Zoran Mamdani has won the New York mayoral election after a long campaign. Over the past year, the city’s crypto industry has been closely monitoring what Mamdani’s appointment as mayor means for the blockchain space.
The Associated Press on Wednesday called the race in Mamdani’s favor. He defeated former Governor Andrew Cuomo, who ran as an independent, and Republican Curtis Silwa. Mamdani’s campaign focused on New York City’s cost-of-living issues, such as rent and childcare costs, and proposed funding these efforts with taxes on the city’s top 1% of earners.
Some in the crypto industry, including Tyler Winklevoss, co-founder of cryptocurrency exchange Gemini, were disappointed by Mamdani’s popularity in the polls. Critics argued that his policy would be a disaster for businesses in the city.
Although Mamdani has made few public comments about cryptocurrencies, the industry is now focused on how the next mayor’s policies will affect digital assets.
Mamdani’s position on virtual currencies is unclear
While other mayoral candidates, most notably Mr. Cuomo and former Mayor Eric Adams, have publicly expressed support for the crypto industry, Mr. Mamdani has not.
He mentioned cryptocurrencies a few times, but his comments had little to do with policy or whether he would support the industry in New York City.
In 2023, following the collapse of the Terra stablecoin system and the collapse of the cryptocurrency exchange FTX, New York State Attorney General Letitia James introduced a consumer protection bill.
In James’s words, the bill would introduce “common sense steps to protect investors and end the fraud and dysfunction that has characterized cryptocurrencies.”
Mamdani, who was a member of the New York City Council at the time, supported the bill, saying, “When crypto companies fail, it’s not the rich who suffer, but small investors, disproportionately from low-income and communities of color.”
The mayor-elect also addressed cryptocurrencies linked to his opponent, Cuomo. Mamdani pointed out in April that Cuomo was advising cryptocurrency exchange OKX regarding an investigation by the U.S. Securities and Exchange Commission.
The investigation ultimately led to OKX pleading guilty to flouting U.S. anti-money laundering laws and paying more than $500 million in fines.
Both of the above statements, while touching on cryptocurrencies, focus on other elements of Mamdani’s campaign, such as consumer protection and affordability concerns, and contrast him with his political opponents.
However, this did not stop him from drawing the ire of prominent members of New York’s cryptocurrency industry and the broader blockchain space.
Related: Cryptocurrency advocacy groups endorse Andrew Cuomo in New York mayoral race as election approaches
In response to Mamdani’s comments about taxing billionaires, White House AI and crypto mogul David Sachs wrote, “Wake up, Silicon Valley. This is the future of the Democratic Party. Communism defeated liberalism. Even Bill Clinton took a knee. You basically have two choices now: join MAGA or prepare to join Mamdani’s dinner menu.”
Tyler Winklevoss claimed that Mamdani was supported by spoiled and educated college students. “They have never learned the values of Western civilization, so they don’t know why or how to fight for it.”
Sequoia partner Sean Maguire, who led the investment in stablecoin platform Bridge, delivered an Islamophobic critique, saying, “The West will learn this lesson the hard way.”
Concerns about Mamdani’s appointment as mayor led to large donations to Mr. Cuomo’s campaign from financial industry titans. 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 replied, “He spends more money on me than he taxes me.”
Innovation New York PAC, a lobbying committee for the crypto and AI industries, announced its support for Cuomo. The announcement was made on October 28, just one week after Cuomo tried to curry favor with the cryptocurrency industry by announcing his digital asset development strategy. Cointelegraph reported that Innovate has already donated $30,000 to Cuomo’s campaign.
What can the mayor do?
Despite vocal opposition from financial institutions and crypto industry heavyweights, the mayor’s actual impact on cryptocurrencies has been limited.
Securities and finance laws originate in Albany and Washington, and any changes the mayor wants to implement in this area must first be approved by the state and federal governments.
Mayors have influence over city taxes, licenses, building permits, etc., all of which could impact the crypto industry if they decide to push these buttons. But even here, the mayor’s influence is limited.
Related: New York Mayor establishes Digital Assets and Blockchain Authority
As crypto lawyer Aaron Brogan pointed out, “The truth is that crypto companies generally operate on a lighter note. They don’t need large real estate or specialized equipment, just human capital and a room full of ideas. So they’re relatively insensitive to local pressures on the development side. Obviously, energy-intensive applications like Bitcoin mining are a different story, but no one’s doing that in New York anyway.”
Brogan said the state’s strict BIT license requirements also limit the mayor’s ability to exercise control from the retail level. “Many companies are either avoiding the state entirely or existing within the state’s Bitlicensing system, making them likely to be insulated from direct pressure from the city.”
Mamdani will not be sworn into office until January 1, 2026, but he will have to fight hard even then to influence the policies he campaigned for. It remains to be seen how these will target or impact the crypto industry.
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