New York City Comptroller Brad Lander has spoken out against Mayor Eric Adams’ proposal to issue Bitcoin-backed municipal bonds, labeling it a risky venture that could damage investor confidence. In a statement released on May 29, Lander made it clear that he would not support the issuance of these bonds during his term. He stated, "Cryptocurrencies are not sufficiently stable to finance our City’s infrastructure, affordable housing, or schools," emphasizing that such a move could expose the city to new risks and undermine trust among bond buyers.
Adams unveiled his idea for these so-called ‘BitBonds’ at the Bitcoin 2025 conference in Las Vegas on May 28. He has called for the repeal of New York State's BitLicense program and positioned the proposed bonds as investments that could help New York engage with the crypto market. He mentioned his commitment to advocating for these municipal bonds, which would allow New York City to attract investment through Bitcoin-backed financial instruments.
A policy brief from the Bitcoin Policy Institute previously detailed a model for BitBonds, suggesting that investors could earn a 1% annual interest rate over ten years, along with a share of any gains from Bitcoin price increases. The proposed structure would allocate 90% of the raised funds toward government projects while 10% would be set aside for Bitcoin purchases.
Lander’s refusal comes with a reminder that the primary purpose of issuing bonds is to finance long-term investments that provide benefits across multiple fiscal years. His comments have raised questions about the viability of crypto-based financial products in municipal capital markets as Adams pushes for their adoption.
While details on how the BitBond would operate are still pending, Lander’s stance signals a hesitance from certain city officials to embrace cryptocurrencies in public finance, which could have broader implications for how municipalities explore new funding avenues in the future.
Adams unveiled his idea for these so-called ‘BitBonds’ at the Bitcoin 2025 conference in Las Vegas on May 28. He has called for the repeal of New York State's BitLicense program and positioned the proposed bonds as investments that could help New York engage with the crypto market. He mentioned his commitment to advocating for these municipal bonds, which would allow New York City to attract investment through Bitcoin-backed financial instruments.
A policy brief from the Bitcoin Policy Institute previously detailed a model for BitBonds, suggesting that investors could earn a 1% annual interest rate over ten years, along with a share of any gains from Bitcoin price increases. The proposed structure would allocate 90% of the raised funds toward government projects while 10% would be set aside for Bitcoin purchases.
Lander’s refusal comes with a reminder that the primary purpose of issuing bonds is to finance long-term investments that provide benefits across multiple fiscal years. His comments have raised questions about the viability of crypto-based financial products in municipal capital markets as Adams pushes for their adoption.
While details on how the BitBond would operate are still pending, Lander’s stance signals a hesitance from certain city officials to embrace cryptocurrencies in public finance, which could have broader implications for how municipalities explore new funding avenues in the future.
