New York City Comptroller Rejects Mayor Adams’s Bitcoin-backed Bonds Proposal

New York City Comptroller Brad Lander rejects Mayor Eric Adams’s proposal for Bitcoin-backed municipal bonds, citing financial risks and potential loss of trust from investors. Lander states he will not approve such bonds while in office, warning that cryptocurrencies lack the stability needed for city financing. Amid ongoing political maneuvering ahead of upcoming elections, the future of the proposal remains uncertain, as Adams seeks more clarity on the BitBond initiative.

New York City Comptroller Brad Lander has spoken out against Mayor Eric Adams’s idea of issuing municipal bonds that would be backed by Bitcoin. In a statement released on May 29, Lander warned that this kind of proposal could bring significant financial risk and disturb investor confidence in the city’s financial practices. He firmly announced that even while he holds his current position, he will not greenlight crypto-backed debt instruments.

Lander elaborated on his concerns, explaining that the volatility of cryptocurrencies makes them inappropriate for funding essential services such as the city’s infrastructure, housing projects, or educational institutions. He expressed that this approach could expose the city to new financial dangers while undermining the trust of bond buyers. “Cryptocurrencies are not sufficiently stable to finance our City’s infrastructure, affordable housing, or schools,” Lander stated.

Interestingly, speculation is swirling around Lander’s political future as he is seen as a potential candidate to replace Adams in the upcoming election. As Adams seeks to run for reelection as an independent, Lander is preparing his own campaign as a Democrat. This adds another layer of complexity to the ongoing discussion about the financial direction under both leaders.

The push for the so-called “Bitbond” originated from Adams’s announcement at the Bitcoin 2025 conference in Las Vegas, where he expressed his desire to see such a municipal bond established. Adams stressed that he would aggressively pursue bringing these innovative bonds to New York City, stating, “I believe we need to have a Bitbond, and I am going to push and fight to get a Bitbond in New York.”

In March, a policy brief presented by the Bitcoin Policy Institute outlined a rough model for how BitBonds would operate. This report indicated that during a 10-year term, bondholders could expect to earn a 1% annual interest, in addition to receiving a portion of any appreciation in Bitcoin’s price upon bond maturity. Furthermore, it suggested directing 90% of the raised funds into government projects while earmarking the remaining 10% for Bitcoin purchases.

Lander’s recent statement included a hypothetical breakdown of how this bond could be structured, indicating that investors would get all Bitcoin appreciation up to a 4.5% threshold compound annual return over ten years. After exceeding this threshold, the profits would be split—investors receiving half of additional gains, while the other half would benefit the city.

However, Adams has not yet clarified how the BitBond would ultimately function in practice. Lander highlighted the importance of using bonds primarily to support capital projects. Under Comptroller’s Directive 10, bonds are necessary for long-term investments that help the city over several fiscal years, further emphasising the significance of managing the city’s financial credibility carefully.