NYC Mayor Adams Proposes ‘BitBond’ Security, Calls on NYDFS to End BitLicense
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On May 28, New York City Mayor Eric Adams pitched “BitBond” – a Bitcoin-backed city bond at the Bitcoin 2025 Conference, doubling down on demands to shut down New York’s expensive “BitLicense.
He argued that Wall Street’s home must adopt Bitcoin-linked debt to stay competitive as governments worldwide accumulate assets to build crypto reserves.
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Can BitBond Replace BitLicense to Boost NYC’s Crypto Appeal?
Adams told attendees he will “push and fight” until New York City issues its first BitBond.
The Mayor gave no timeline but said he would lobby state legislators and city finance officials to clear legal hurdles for both the BitBond and the regulatory overhaul.
Despite the enthusiasm generated, the Mayor didn’t offer any clear detail on how the NYC BitBond will operate. However, it is speculated that it will operate in a similar format outlined in the March 31 brief from the Bitcoin Policy Institute.
That proposal allocates 90% of proceeds to public projects, with 10% used to purchase BTC. Bondholders would earn 1% annual interest for ten years plus a share of any price appreciation.
The Mayor also spoke on crypto regulation in the Big Apple. He called the 2015 BitLicense “too costly,” saying its stringent AML and KYC rules drive innovators away.
“Let’s get rid of the Bitcoin license and allow the free flow of Bitcoin in our city,” he declared, positioning repeal as essential for a thriving local crypto sector.
Circle secured the first BitLicense, with Coinbase and others following, yet many startups chose friendlier states. The Mayor wants to reverse that trend.
After hosting the inaugural NYC Crypto Summit on May 20, the Mayor also created a digital asset advisory council and enlisted firms Figure, Traction, and Scale to craft policy and attract jobs.
If successful, New York could become the first major U.S. metropolis to fund civic projects with Bitcoin, shed one of the industry’s most controversial rules, and become the country’s leading crypto hub.
Is Regulatory Framework the Final Domino for Global Crypto Adoption?
The Mayor’s aggressive push for crypto reflects the rising global momentum behind digital assets.
Gemini’s 2025 State of Crypto survey shows adult ownership rising to 24%, a 3% year-over-year increase.
An increase fueled in part by Washington’s Strategic Bitcoin Reserve and the GENIUS Act pending in the House, which aims to regulate dollar-pegged stablecoins in the U.S.
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These policies are sparking fresh interest among first-time investors.
Meanwhile, Wall Street is taking note. Executives at JPMorgan, Bank of America, Morgan Stanley, and Charles Schwab are in talks with each other to line up pilot projects. These include custody partnerships and stablecoin trials to limited spot trading while they await clearer anti-money laundering and supervisory guidance from the OCC and SEC.
Nevertheless, all fears have not been totally eliminated. JPMorgan chief Jamie Dimon has said the bank will let clients buy Bitcoin but will not store it, and peer institutions say they will follow any rival that proves an expansion can clear regulatory scrutiny.
As regulatory clarity emerges, market confidence should grow, and broad crypto integration may occur across institutions worldwide.
