London Daily

Focus on the big picture.
Saturday, Jul 19, 2025

Is the Big Apple about to become the US' latest crypto hub?

Is the Big Apple about to become the US' latest crypto hub?

Eric Adams, a Bitcoin-enthusiast, has pledged to turn New York into a crypto hub.

With US cities such as Miami and Austin trying to court digital asset companies, John Wu was unsure whether to make New York the permanent home of his cryptocurrency and blockchain start-up Ava Labs - until Eric Adams was elected mayor last year.

Wu said the election of Adams, a Bitcoin-enthusiast who has pledged to turn the Big Apple into a crypto hub, played "a big part" in his decision to set up a permanent office in the city in November.

"Knowing that we have an administration that's friendly, especially in the New York City area, is going to be very helpful," said Wu, president of the company.

Adams was sworn in this month and has a lot of work to do to make New York as welcoming as other would-be crypto hubs.

New York City Mayor Eric Adams speaks during a news conference in the Brooklyn borough of New York, Tuesday, Jan. 4, 2022.


New York state has stiff regulations for crypto companies, including a costly licensing requirement, and the state attorney general is cracking down on some companies in the sector.

Still, Wu and other cryptocurrency executives said the mayor's friendly stance could draw digital asset start-ups keen to assert their legitimacy alongside traditional Wall Street companies and to tap the financial hub's deep talent pool and investor base.

Chainalysis, a cryptocurrency data platform, also doubled down on New York in 2021, signing a lease in August for a Manhattan office space that will accommodate up to 200 staff.

"The new mayor's support for the industry strengthens my conviction that New York is the best place for Chainalysis' headquarters," Michael Gronager, chief executive and co-founder of Chainalysis, told Reuters in a statement.

"We plan to tap into the city's deep talent pool for our next phase of growth," he added.

With the digital asset industry growing fast and the value of cryptocurrencies surging - surpassing $3 trillion in November - many jurisdictions want a slice of the action.

During his campaign, Adams expressed interest in developing a digital wallet for city employees and recipients of public benefits. Following his election, he pledged to take his first three paychecks in bitcoin and suggested that New York schools teach courses on cryptocurrency and blockchain technology.

"NYC is going to be the center of the cryptocurrency industry...Just wait!" he tweeted in November.

Adams has yet to propose specific policies that would give crypto companies an incentive to set-up in New York, unlike other cities like Miami and Austin whose marketing has highlighted their low energy costs and competitive tax rates.

The mayor's office did not respond to a request for comment, but Adams has said he hopes his crypto-friendly stance will attract more tech talent to the city, and many executives believe it will.

“I think it's a very effective signalling tool to ... say, 'Okay, we recognise that this industry can benefit everyone,'” said Zach Dexter, chief executive of FTX US Derivatives, a crypto derivatives exchange based in Miami.

Regulatory roadblock?


It remains unclear whether Adams can work from City Hall to reshape state regulations the virtual currency industry has decried as overly stringent and expensive.

"He can be a cheerleader,” said Stephen Gannon, an attorney at Murphy & McGonigle. "But mostly the regulatory environment is driven by the state."

New York Attorney General Letitia James has shut down crypto lending platforms, saying they must register with her office just like other lending platforms operating in the state or offering products to New Yorkers.

New York also requires most digital currency-related companies to obtain a "BitLicense" and comply with know-your-customer, anti-money laundering, and capital requirements. The New York Department of Financial Services (NYDFS), which did not respond to a request for comment, has granted only 20 licenses.

"Adams' comments do provide more confidence for us," said Haohan Xu, CEO of New York-based digital asset trading network Apifiny. "However, for all crypto companies located or are looking to be in NYC, the focus is still on the BitLicense".

While the BitLicense is a hurdle for some, Adams could offset costs through other incentives, such as commercial tax breaks.

Matt Homer, the former head of innovation at NYDFS, said Adams could have some sway over state crypto rules, especially since Governor Kathy Hochul has pledged to work with him on business issues.

"I think he could potentially... have an influence on regulation," said Homer, currently an executive in residence at venture capital firm Nyca Partners.

Hochul's office did not respond to a request for comment.

Competition


New York will have to compete with other crypto-friendly states and cities. Colorado, for instance, passed a law in 2019 exempting digital currencies from certain securities rules. Wyoming has created a special purpose charter for crypto companies.

Miami Mayor Francis Suarez, with whom Adams has already established a friendly rivalry on Twitter, is also courting crypto companies, touting lower taxes and living costs.

Crypto executives say there is room for more than one city to emerge as crypto destinations given the sector's booming growth. Dexter pointed out that New York has already managed to draw tech talent from Silicon Valley, which could also help give Adams an edge.

"There's this opportunity to have a few crypto capitals," said Dexter. "I think he is going to have some success."

Newsletter

Related Articles

0:00
0:00
Close
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
×