Encouraging rhetoric from incoming New York City Mayor Eric Adams is a welcome sign for cryptocurrency-related businesses looking to settle there.
Some are questioning whether Adams will be able to impose more stringent regulations on the state level, despite his positive signs. Adams is also competing with other American cities for the position of next crypto hub.
With a limited selection of places, Ava Labs, a cryptocurrency and blockchain startup, was unsure where to set up shop. John Wu, the company president, said Adams’ election played a “big part” in his decision for setting up shop in New York. Wu stated that knowing that there is an administration that is friendly, especially in New York City, will be very helpful.
Doubling down on its choice of New York City, last year cryptocurrency data platform Chainalysis signed a lease for a Manhattan office space that accommodates up to 200 staff. Michael Gronager, co-founder and CEO of Chainalysis, stated that the support from the new mayor for the industry “enhances my conviction” that New York City is the best location for Chainalysis’s headquarters. “We intend to tap into the city’s deep talent pool .”
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Following his election, Adams came out in favor of cryptocurrencies, offering to receive his first three months’ pay in Bitcoin and suggesting that local schools educate students on cryptocurrency and blockchain technology. Adams had also expressed interest in developing a digital wallet for city employees and recipients of public benefits, which inspired CityCoins to make NYCCoin its next project.
Although he has not yet proposed any policies that would provide a legitimate incentive to crypto companies to move, many believe his positive attitude has been successful. Zach Dexter (CEO of crypto derivatives exchange FTX U.S.) stated, “I think it’s a very effective signaling device to… say, Okay, we recognize this industry can be beneficial for everyone.'” Derivatives.
Some others are examining whether Adams, as a leader of the city, can influence regulations at the state level, particularly those that conflict with his appraisal. Stephen Gannon, Murphy & McGonigle attorney, said that Adams can “be a cheerleader.”
The New York State has the strictest requirements for crypto-related businesses. This includes a “BitLicense”, compliance with know your customer, anti-money laundering and capital regulations, as well as compliance with capital regulations. Additionally, New York Attorney General Letitia James has said that such companies must register with her office before operating in the state or offering products to New Yorkers, having shuttered a pair that did not.
Despite these hurdles, some attest that Adams could subsid