Emre Yumlu 
New York City Mayor Eric Adams has drawn attention with his proposal to issue Bitcoin-backed municipal bonds, but the city’s Comptroller Brad Lander strongly opposed the idea. Lander emphasized that the plan is “legally questionable and financially irresponsible.”
In his statement on May 29, Lander made it clear that he would not allow a crypto-linked debt instrument during his term. In New York, decisions on debt issuance are made jointly by the Mayor’s Office of Management and Budget and the Comptroller’s Office.
“Cryptocurrencies are not stable enough to fund our city’s infrastructure, affordable housing, or educational investments,” Lander said, adding that such a bond could expose the city to new risks and undermine investor confidence.
Adams Introduces Bitbond at Bitcoin 2025 Conference
On May 28, Mayor Adams presented his plans for this new model, dubbed “Bitbond,” at the Bitcoin 2025 conference held in Las Vegas. In the same speech, he also reiterated his call to eliminate the state’s crypto regulatory framework known as BitLicense. “I believe we need to launch Bitbond, and I will fight to bring this investment tool to New York,” he said.
Proposed Bitcoin Bond Model: Low Yield, High Risk
According to a policy brief released in March by a lobby group called the Bitcoin Policy Institute, the Bitbond model proposes an annual fixed interest of 1%, with investors receiving a share of Bitcoin price gains after 10 years. 90% of the raised funds would be allocated to public spending, while 10% would go toward building a strategic Bitcoin reserve.
Lander’s office also shared a simulation model of how this bond could perform. Investors would receive 100% of Bitcoin appreciation up to a 4.5% compound annual return over 10 years. If this threshold is exceeded, investors would only receive 50% of the additional gains, with the remaining 50% going to the city’s budget.
New York’s Debt Policy and Legal Boundaries
Lander reminded the public that the city’s bonds are typically used for long-term capital investments. According to Directive 10, these investments must offer multi-year benefits, such as infrastructure or technological improvements. Other uses are strictly limited and clearly defined by law.
Mayor Adams, on the other hand, has not yet provided detailed information on how the Bitbond would function technically.
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