NYC Comptroller Labels Eric Adams’ Bitcoin Bond Initiative a ‘Fiscal Misstep’

New York City Comptroller Brad Lander has rejected Mayor Eric Adams’ proposal to issue municipal bonds backed by bitcoin, calling the initiative “legally questionable and fiscally irresponsible.”

The “BitBond” plan, presented by Adams at a bitcoin conference in Las Vegas earlier this month, seeks to raise capital by incorporating cryptocurrency into the city’s borrowing strategy. However, Lander, responsible for overseeing the city’s finances and debt, warned the approach could jeopardize investor trust and conflict with federal tax regulations.

“Cryptocurrencies are too volatile to fund essential city needs such as infrastructure, affordable housing, and education,” Lander said in a press release. He cautioned that the city’s current financial systems are deeply rooted in the U.S. dollar, and integrating bitcoin would require conversion processes that the city is not equipped to handle.

Mayor Adams has made crypto a cornerstone of his administration’s agenda, including converting some city employee paychecks into digital assets and launching a digital asset advisory council. Still, Lander urged caution, emphasizing that New York’s fiscal stability depends on well-established, dollar-based mechanisms.