New York City Comptroller Brad Lander has criticized Mayor Eric Adams’s proposal to issue municipal bonds backed by Bitcoin, warning that such a move would introduce financial risk and undermine investor confidence.
In a May 29 statement, Lander said he would not allow the New York City to issue the crypto-tied debt instrument while he is in office. Lander’s office shares responsibility for debt issuance with the Mayor’s Office of Management and Budget.
“Cryptocurrencies are not sufficiently stable to finance our City’s infrastructure, affordable housing, or schools,” the comptroller said, adding that the proposal exposes the city ”to new risks and erode bond buyers’ trust.”
According to Bloomberg, Lander is also a potential contender to succeed Adams in November’s election, running as a Democrat, while Adams is seeking reelection as an independent.
Adams announced plans to introduce a municipal bond backed by Bitcoin, or Bitbond, on May 28 at the Bitcoin 2025 conference in Las Vegas, Nevada. Adams also reiterated calls to repeal New York State’s BitLicense program.
“I believe we need to have a Bitbond, and I am going to push and fight to get a Bitbond in New York so you can do those same bond investments in New York City,” Adams told the crowd at the conference.
A March policy brief from the Bitcoin Policy Institute, a Bitcoin lobby group, outlined a potential model for BitBonds. According to the document, bondholders would earn a 1% annual interest rate over a 10-year period, and upon maturity, they’d also receive a share of any gains in the price of Bitcoin. The document also proposes that 90% of the funds raised would go toward government spending, while the remaining 10% would be used to purchase Bitcoin for a strategic reserve.
Lander’s statement included a simulated model of the bond’s potential structure. According to the document, investors would receive 100% of Bitcoin appreciation up to a 4.5% threshold compound annual return for 10 years. “Upon achieving the threshold, investors receive 50% of additional Bitcoin appreciation. The government retains the remaining 50% of gains beyond the threshold.”
Adams has yet to provide further details on how the proposed BitBond would function. Lander’s statement emphasized that New York City primarily issues bonds to fund capital assets, and can finance other purposes only under very limited and narrowly defined circumstances. Under Comptroller’s Directive 10, capital assets are long-term investments like infrastructure or technology upgrades that benefit the city over multiple fiscal years.
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