Zohran Mamdani has won the New York City mayoral election after a long campaign. Over the past year, the city’s crypto industry has been watching closely to see what a Mamdani mayorship could mean for the blockchain space.
The Associated Press called the race in favor of Mamdani on Wednesday. He beat out former Governor Andrew Cuomo, who ran as an independent, and Republican Curtis Silwa. Mamdani’s campaign focused on cost-of-living issues in New York City, such as rent and childcare, and proposed funding these initiatives with a tax on the city’s top 1% earners.
Some in the cryptocurrency industry, such as crypto exchange Gemini co-founder Tyler Winklevoss, were dismayed by Mamdani’s popularity in the polls. Critics claimed that his policies would be a disaster for businesses in the city.
Despite Mamdani making few public comments about cryptocurrencies, the industry is now watching to see how the mayor-elect’s policies will affect digital assets.
Mamdani’s Position on Crypto Remains Unclear
While other mayoral candidates, particularly Cuomo and former Mayor Eric Adams, have made public pronouncements supporting the crypto industry, Mamdani has not.
The few times he has mentioned crypto, his statements have had little to do with policy or whether he would support the industry in New York City.
In 2023, following the implosion of the Terra stablecoin system and the collapse of cryptocurrency exchange FTX, New York State Attorney General Letitia James introduced a consumer protection bill.
In James’ words, the bill would introduce “commonsense measures to protect investors and end the fraud and dysfunction that have become the hallmarks of cryptocurrency.”
Mamdani, who at the time was a member of the New York City Assembly, supported the bill, stating, “When crypto companies collapse, it isn’t the rich who suffer, it’s small investors who disproportionately come from low-income and communities of color.”
The mayor-elect also mentioned crypto as it concerned his opponent, Cuomo. In April, Mamdani noted that Cuomo had advised crypto exchange OKX on a probe from the US Securities and Exchange Commission.
The investigation would eventually see OKX plead guilty to flouting US Anti-Money Laundering laws and paying more than $500 million in penalties.
Both of the above statements, while mentioning crypto, focused more on other elements of Mamdani’s campaign, including consumer protection and affordability concerns, and contrasted him with a political opponent.
However, this has not stopped him from drawing the ire of prominent members of New York’s crypto industry or the blockchain space more broadly.
In response to comments Mamdani made about taxing billionaires, White House AI and crypto czar David Sacks wrote, “Wake up, Silicon Valley. This is the future of the Democrat Party. Communism has defeated liberalism. Even Bill Clinton has bent the knee. You basically have two choices now: Get on board with MAGA or prepare to be on Mamdani’s dinner menu.”
Tyler Winklevoss claimed that Mamdani was being supported by spoiled, educated university students. “They never learned the value of Western civilization so they don’t understand why, or know how, to fight for it.”
Shaun Maguire, a partner at Sequoia who led the firm’s investment in stablecoin platform Bridge, offered a critique, stating, “The West will learn this lesson the hard way.”
Concerns over a Mamdani mayorship translated into large donations to Cuomo’s campaign from finance industry bigwigs. Hedge fund manager Bill Ackman reportedly donated $1 million to Defend NYC and $250,000 to Fix the City, two anti-Mamdani political action committees (PACs).
Mamdani responded, “He’s spending more money against me than I would even tax him.”
Innovate NY PAC, a committee lobbying for the crypto and AI industries, announced that it endorsed Cuomo. The announcement came on Oct. 28, just a week after Cuomo attempted to court the crypto industry by announcing a digital asset development strategy. Innovate had already contributed $30,000 to Cuomo’s campaign.
Limited Mayoral Impact on Crypto
Despite vocal opposition from financiers and crypto industry heavyweights, the mayor’s actual impact on crypto is limited.
Securities and finance laws originate from Albany and Washington, and any changes the mayor may wish to implement in this area must first be approved by the state and federal governments.
The mayor has influence over things like municipal taxes, licensing and building permits, all of which can affect the crypto industry if the mayor decides to push on these buttons. But even here, mayoral influence is limited.
As noted by crypto lawyer Aaron Brogan, “The truth is that cryptocurrency firms generally operate light. They don’t need massive real estate or specialized equipment, just a room full of human capital and an idea. This makes them relatively less sensitive on the development side from local pressures. Obviously, energy-intensive applications like Bitcoin mining are a different story, but nobody is doing that in New York anyway.”
The ability for the mayor to exert control from the retail level is also limited, Brogan stated, thanks in part to the state’s stringent BitLicense requirements. “Many firms either avoid the state entirely or else exist within the state BitLicense regime, which would likely insulate them from direct city pressure.”
Mamdani won’t take the oath of office until Jan. 1, 2026, and even then, he will need to fight hard to affect the policies on which he campaigned. How and whether these will target or even touch the crypto industry remains to be seen.