Eric Adams, NYC Mayor: Bitcoin not a Security

Updated: 14 July 2023

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Eric Adams, the Mayor of New York City, has experienced a hiccup with a disclosure error, believing that bitcoin is not classified as a security. Adams, who is recognized for promoting the city as a hub for the cryptocurrency industry and converting his paychecks into crypto, made this mistake, according to his team.

Adams’ team revealed on Thursday that there had been a mistake on a mandatory report submitted to the city’s Conflicts of Interest Board. In his financial disclosure report for 2022, Adams stated he did not own any security (like stocks, ETFs, mutual funds, bonds, or cryptocurrencies) valued at $1,000 or more by the end of the year. Following questions about his nondisclosure of bitcoin (BTC) and ether (ETH) assets, his team noted that the disclosure would be corrected.

In New York we always go big, so I’m going to take my first THREE paychecks in Bitcoin when I become mayor. NYC is going to be the center of the cryptocurrency industry and other fast-growing, innovative industries! Just wait!

— Eric Adams (@ericadamsfornyc) November 4, 2021

According to Fabien Levy, Adams’ press secretary, Adams didn’t disclose his cryptocurrency holdings in The New York Daily News report because he believed the question only referred to securities, not currencies. This belief aligns with the view of SEC Chair Gary Gensler, who has previously stated that bitcoin is not a security.

After taking office in 2022, Adams announced he would receive his first three salaries in Bitcoin. In practice, he converted his post-tax income into cryptocurrency using Coinbase. This decision was a part of Adams’ broader strategy to turn New York City into a hub for cryptocurrency.

New York and Crypto

Currently, New York State does not have the reputation of being a very crypto-friendly state, if we judge by the number of recent controversies, especially as they relate to crypto mining and the environment. Not long ago, we reported that the state has a partial ban on mining. Crypto industry groups were worried by proposals from environmentalists to expand restrictions on the “proof of work” algorithm that powers Bitcoin and the drive to enact similar laws in other jurisdictions.

New York City, however, has a lot of potential is different than the rest of the state, particularly from the regulators in Albany. In this context, Mayor Adams’ desire to turn the city into a crypto hub is very welcome, taking note of another big city, in Asia that is looking to become a major crypto hub there: Hong Kong.

NYC is going to be the center of the cryptocurrency industry and other fast-growing, innovative industries!

After his election victory, Adams announced on Twitter that “NYC is going to be the center of the cryptocurrency industry and other fast-growing, innovative industries! Just wait!”

Other political figures are also involved with cryptocurrency. Miami Mayor and Presidential candidate Francis Suarez, known for his crypto-advocacy, revealed in his 2022 end-of-year financial disclosures that his crypto assets were valued at approximately $70,000. He stated that he exchanges his annual salary of $130,000 into crypto through Stripe. Furthermore, Democratic presidential candidate Robert F. Kennedy Jr. has announced he would accept campaign donations in bitcoin. His financial disclosures show he held between $100,001 and $250,000 in bitcoin through the second quarter.