Encouragement from incoming New York City Mayor Eric Adams is good for crypto firms looking to set up shop in the city.
Despite these hopeful signs, some are skeptical that he will have the capacity to adopt more stringent state regulations. Furthermore, Adams is competing with other American municipalities for the title of future crypto hub.
Companies were asked to join. Ava Labs, a cryptocurrency and blockchain start-up, was unsure where to locate due to a lack of options. On the other hand, company president John Wu indicated that Adams’ election played a “major effect” in his choice to establish in New York.
“Knowing that we have a supportive government, particularly in the New York City area,” Wu remarked. Chainalysis, a bitcoin data start-up, doubled down on its New York City choice last year, securing a deal for a Manhattan office space that can house up to 200 people.
“The next mayor’s support for the industry reinforces my conviction that New York is the greatest home for Chainalysis’s headquarters,” said Michael Gronager, co-founder and CEO of Chainalysis.
Following his victory, Adams came out in favor of cryptocurrencies, proposing to pay his first three months’ salary in Bitcoin and urging local schools to teach students about cryptocurrency and blockchain technology.
Adams also expressed interest in developing a digital wallet for municipal employees and users of public benefits, inspiring CityCoins to create NYCCoin as its next project.
Despite the fact that he has yet to propose any concrete legislation that would provide a major incentive for crypto companies to join, some believe that his upbeat approach has already proven helpful.
“I think it’s a really effective signalling tool to… say, ‘OK, we recognize his business can benefit everyone,” said Zach Dexter, CEO of FTX US Derivatives, a crypto derivatives exchange.