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Today, New York City held its inaugural crypto summit.
The gathering occurred at Gracie Mansion, the residence of the mayor, and was graced by notable individuals from the crypto sector, many of whom reside in New York.
During the event, Mayor Adams expressed empathy for the participants, asserting that they have been unjustly persecuted, and he emphasized that it is now safe for individuals in the Bitcoin and crypto space to both voice their opinions and establish their businesses in New York.
“Observe how they’ve treated you,” remarked Mayor Adams.
“You were regarded as the adversary rather than the supporters,” he continued.
“You’ve been lurking in the shadows, reluctant to emerge — step out now.”
As Mayor Adams proceeded, he reaffirmed his commitment to transforming New York into the “crypto capital of the world,” a pledge he initially made in 2021, despite limited progress on this front since then.
New York remains a region where it is nearly impossible for Bitcoin and crypto startups to operate due to the BitLicense, a prerequisite for running a digital asset business in the state.
Acquiring a BitLicense frequently costs over $100,000 and requires months, if not years, of navigating bureaucracy and overcoming regulatory obstacles to secure.
Most startups lack the time or resources to obtain one.
Thus, when Mayor Adams and New York City’s Chief Technology Officer, Matthew Fraser, urged the participants at today’s event to devise solutions that would render New York City more crypto-friendly, many highlighted the necessity to eliminate the BitLicense — or at the very least, render New York City impervious to its influence.
New York City As A Bitcoin And Crypto Sanctuary City
“To cultivate a flourishing [crypto] economy, we must abolish the BitLicense,” stated one participant. “We at least need to establish a regulatory sandbox in New York City.”
Another participant contended that “New York City should become a sanctuary city from the BitLicense.”
Participants voiced such suggestions following sessions of roundtable discussions where they deliberated various issues pertaining to Bitcoin and crypto before having a representative from their table present proposals to the larger group. (As the participants agreed to adhere to the Chatham House Rule, I am unable to disclose the names of those who represented their groups at the event. However, I can share the names of the keynote speakers.)
Another individual advocating for New York to be a “crypto sanctuary city” noted that there is a precedent, as the city has permitted the cannabis industry to thrive within its borders while the rest of the state did not.
Nick Spanos, who founded the first physical exchange and the earliest face-to-face Bitcoin meetup space in New York City, the Bitcoin Center, in 2013, also advocated for New York as a crypto sanctuary city.
“We provide sanctuary to immigrants — we can offer sanctuary to crypto enterprises,” he asserted passionately.
Spanos proceeded to criticize the BitLicense, questioning its validity.
“What type of license is it when, after 12 years, there are only 30 issued?!” exclaimed Spanos. “That’s a license for insiders!”
Now Is The Time To Pass Crypto Legislation In New York State
Galaxy CEO Mike Novogratz emphasized that the present moment is ripe for New York to enact legislation that will support the crypto sector.
“After five arduous years, DC has indicated let’s embrace this technology,” remarked Novogratz, implying that New York should align with the federal government’s direction.
“New York State has not made crypto straightforward — it has taken a considerable amount of time for individuals to secure licenses,” he further stated.
Novogratz also noted that the crypto industry is “primed for takeoff,” though he also emphasized the responsibility on the industry to demonstrate its worth by developing products that deliver genuine value to users.
He concluded by declaring that, thus far, he has primarily recognized value in Bitcoin and stablecoins.
On the subject of stablecoins, Brock Pierce, co-founder of Tether, urged Albany (New York’s capital) to approve Assembly Bill 6266 and Senate Bill 3262, both of which would entail requirements for establishing and conducting limited-purpose trust companies if enacted into law. Such legislation would seemingly facilitate Tether’s operations in New York.
Other Suggestions For Crypto Applications From The Attendees
A number of attendees also proposed developing crypto products aimed at offering financial services to New York City’s approximately 305,000 residents who lack bank accounts (although, none suggested incorporating bitcoin in these services).
Many also underscored the necessity of “crypto and blockchain education” within New York’s public school curriculum.
Even Mayor Adams addressed this in his remarks.
“Every young individual in the DOE [Department of Education] should be educated about blockchain and crypto,” he asserted.
Furthermore, one participant proposed utilizing blockchain technology to protect the city’s public records.
(I supported this notion by recommending that the city consider employing Simple Proof, a firm that utilizes the OpenTimestamps protocol on Bitcoin to safeguard public documents, including election results, to help protect its essential documents.)
Call To Action
Mayor Adams stated that when he, the “mayor of the most amazing city on the planet,” begins to speak about Bitcoin and crypto, the entire world will take notice.
For this reason, he expressed a desire for the most talented individuals to assist him as he approaches the subject.
At the conclusion of the gathering, attendees were requested to share their notes so that Adams’ team could review them and possibly invite select participants to assist the mayor in carving a more favorable regulatory path ahead.
It appears his staff is prepared to help, as Fraser encouraged the attendees to “aid the city in deregulating the industry.”
Only time will reveal if Mayor Adams and his team will proceed with collaboration alongside the Bitcoin and crypto industry to facilitate operations for companies in New York City, or if he’ll lose enthusiasm for such an initiative, as he did four years ago.
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