Beautiful Virgin Islands

Wednesday, Aug 27, 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

Beautiful Virgin Islands
0:00
0:00
Close
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
×