Former New York Governor Andrew Cuomo is far behind Democratic front-runner Zoran Mamdani, despite unveiling a proposal to turn the city into a cryptocurrency hub.
Mr. Cuomo’s plan, announced Sunday, would create a new office tasked with attracting emerging technology companies, including cryptocurrencies and blockchain.
The move follows a similar effort by outgoing Mayor Eric Adams, which has had mixed results so far. The mayor’s office reported that while many crypto startups are emerging in New York, there has been no major change in existing crypto businesses. Some point out that the mayor’s office generally has little influence over how or whether the crypto industry develops.
With the mayoral election just two weeks away, a last-ditch effort to appeal to the crypto industry may not be enough to give Cuomo an edge over the front-runner.
Cuomo’s crypto strategy as Mamdani leads
On Sunday, Mr. Cuomo’s campaign announced that if elected, he would create a “chief innovation officer” within his administration to attract business in emerging technology fields. He also plans to establish an “Innovation Council” made up of executives from three industries: blockchain, biotechnology and artificial intelligence.
“The next mayor must also ensure that we are leading the way in the technologies that will define the next century, including AI, blockchain, and biotechnology. That is the purpose of this position: to not only keep New York City competitive, but to maintain an edge in the global innovation economy.”
The appeal of focusing on the cryptocurrency lobby is understandable. Cryptocurrency lobby groups have broken campaign finance records in the 2024 election and made digital asset regulation a top priority for Washington lawmakers.
The Winklevoss twins, who reportedly donated more than $30 million to cryptocurrency industry lobbying groups this year alone, have also harshly criticized Cuomo’s main opponent, Democrat Zoran Mamdani.
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Tyler Winkelvoss blasted Mandani and Democrats in a rambling June 1 post about whether he would “enter the New York mayoral race by supporting a candidate who can defeat Zoran Mandani.”
He said the democratic city was a “broken kleptocracy” and that “anarchy and socialism are the next logical steps in this story.” He said financiers and hedge fund managers had failed to “protect the system that allowed them to be successful in the first place and that allowed New York City to become the greatest city in the world.”
These hedge fund managers and investors, including crypto advocate Bill Ackman, CEO of Pershing Square, have reportedly donated millions of dollars to Mr. Cuomo’s campaign in recent weeks.
But appealing to pro-crypto hedge funds may not be enough to change Mr. Cuomo’s direction. A recent AARP poll shows Mamdani holding a double-digit lead with 43.2% support, followed by Cuomo at 28.9%, Guardian Angels founder Curtis Sliwa at 19.4% and 8.4% undecided or supporting another candidate.
Cryptocurrency was not a top concern for respondents. “The cost of living remains the top issue for nearly two-thirds of voters, and public safety and housing affordability are also important. Despite concerns about the city’s direction, optimism about future improvements under new leadership has increased modestly since the August poll,” AARP said.
Wall Street itself is not entirely sold on the idea that Mamdani’s appointment as mayor would be a disaster for the city. A recent analysis by Business Insider found Mamdani strongly favored for more “back office” roles. Wealthy managers were more likely to support Mr. Cuomo, while colleagues in technology, human resources, operations and information departments showed strong bias against Mr. Mamdani.
How can the mayor of New York influence cryptocurrencies?
Even if Mr. Cuomo were able to make a miraculous breakthrough and secure victory on November 4, the mayor’s office would have limited ability to influence crypto policy.
Outgoing Mayor Eric Adams has sought to turn the city into a cryptocurrency hub. He first demonstrated his belief in cryptocurrencies by receiving his salary in Bitcoin (BTC) and opposing a state-level moratorium on crypto mining. In February 2023, the City Council’s Technology Committee met to discuss blockchain, cryptocurrencies, and other innovative digital tools.
Related: Is Zoran Mamdani really the bad guy for New York’s crypto industry?
But in 2024, few felt Adams had fulfilled that promise. Thomas Pacchia, founder of New York-based Bitcoin bar Pubky, previously told Cointelegraph that he had not noticed much of a change in public sentiment.
However, this did not stop Adams from trying. The mayor continues to make strides to curry favor with the crypto industry, announcing a crypto summit to meet with executives earlier this year. In May, the New York Office of Technology and Innovation (OTI) told Cointelegraph that “from a startup perspective, cryptocurrencies and blockchain are the fastest growing technology industries.”
Last week, Adams announced the creation of the New York City Digital Assets and Blockchain Authority, whose goals include “promoting innovation and development while guiding the responsible development of the cryptocurrency and blockchain ecosystem in New York City.”
“Since 2019, crypto startups have increased by 177% and blockchain startups have increased by 143%,” OTI said.
It is unclear whether this is the result of city-level crypto-related initiatives. The Mayor’s Office has significant influence over business-critical issues such as city taxes, permits, and building permits. However, monetary policy and the regulatory framework for the financial industry are primarily developed at the state and federal levels.
Even if the next mayor, whether Cuomo or Mamdani, wants to influence the crypto industry, they will first have to go through state regulators.
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