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Today, New York City held its inaugural crypto summit.<\/p>\n
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.<\/p>\n
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.<\/p>\n
\u201cObserve how they\u2019ve treated you,\u201d remarked Mayor Adams.<\/p>\n
\u201cYou were regarded as the adversary rather than the supporters,\u201d he continued.<\/p>\n
\u201cYou\u2019ve been lurking in the shadows, reluctant to emerge \u2014 step out now.\u201d<\/p>\n
As Mayor Adams proceeded, he reaffirmed his commitment to transforming New York into the \u201ccrypto capital of the world,\u201d a pledge he initially made in 2021<\/a>, despite limited progress on this front since then.<\/p>\n New York remains a region where it is nearly impossible for Bitcoin and crypto startups to operate due to the BitLicense<\/a>, a prerequisite for running a digital asset business in the state.<\/p>\n Acquiring a BitLicense frequently costs over $100,000<\/a> and requires months, if not years, of navigating bureaucracy and overcoming regulatory obstacles to secure.<\/p>\n Most startups lack the time or resources to obtain one.<\/p>\n Thus, when Mayor Adams and New York City’s Chief Technology Officer, Matthew Fraser, urged the participants at today\u2019s event to devise solutions that would render New York City more crypto-friendly, many highlighted the necessity to eliminate the BitLicense \u2014 or at the very least, render New York City impervious to its influence.<\/p>\n \u201cTo cultivate a flourishing [crypto] economy, we must abolish the BitLicense,\u201d stated one participant. \u201cWe at least need to establish a regulatory sandbox in New York City.\u201d<\/p>\n Another participant contended that \u201cNew York City should become a sanctuary city from the BitLicense.\u201d<\/p>\n 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.)<\/p>\n Another individual advocating for New York to be a \u201ccrypto sanctuary city\u201d 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.<\/p>\n Nick Spanos, who founded the first physical exchange and the earliest face-to-face Bitcoin meetup space in New York City, the Bitcoin Center<\/a>, in 2013, also advocated for New York as a crypto sanctuary city.<\/p>\n \u201cWe provide sanctuary to immigrants \u2014 we can offer sanctuary to crypto enterprises,\u201d he asserted passionately.<\/p>\n Spanos proceeded to criticize the BitLicense, questioning its validity.<\/p>\n \u201cWhat type of license is it when, after 12 years, there are only 30 issued?!\u201d exclaimed Spanos. \u201cThat\u2019s a license for insiders!\u201d<\/p>\n Galaxy<\/a> CEO Mike Novogratz emphasized that the present moment is ripe for New York to enact legislation that will support the crypto sector.<\/p>\n \u201cAfter five arduous years, DC has indicated let\u2019s embrace this technology,\u201d remarked Novogratz, implying that New York should align with the federal government\u2019s direction.<\/p>\n \u201cNew York State has not made crypto straightforward \u2014 it has taken a considerable amount of time for individuals to secure licenses,\u201d he further stated.<\/p>\n Novogratz also noted that the crypto industry is \u201cprimed for takeoff,\u201d though he also emphasized the responsibility on the industry to demonstrate its worth by developing products that deliver genuine value to users.<\/p>\n He concluded by declaring that, thus far, he has primarily recognized value in Bitcoin and stablecoins.<\/p>\n On the subject of stablecoins, Brock Pierce, co-founder of Tether, urged Albany (New York\u2019s capital) to approve Assembly Bill 6266<\/a> and Senate Bill 3262<\/a>, 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.<\/p>\n 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).<\/p>\n Many also underscored the necessity of \u201ccrypto and blockchain education\u201d within New York\u2019s public school curriculum.<\/p>\n Even Mayor Adams addressed this in his remarks.<\/p>\n \u201cEvery young individual in the DOE [Department of Education] should be educated about blockchain and crypto,\u201d he asserted.<\/p>\n Furthermore, one participant proposed utilizing blockchain technology to protect the city\u2019s public records.<\/p>\n (I supported this notion by recommending that the city consider employing Simple Proof<\/a>, a firm that utilizes the OpenTimestamps protocol on Bitcoin to safeguard public documents<\/a>, including election results<\/a>, to help protect its essential documents.)<\/p>\n Mayor Adams stated that when he, the \u201cmayor of the most amazing city on the planet,\u201d begins to speak about Bitcoin and crypto, the entire world will take notice.<\/p>\n For this reason, he expressed a desire for the most talented individuals to assist him as he approaches the subject.<\/p>\n At the conclusion of the gathering, attendees were requested to share their notes so that Adams\u2019 team could review them and possibly invite select participants to assist the mayor in carving a more favorable regulatory path ahead.<\/p>\n It appears his staff is prepared to help, as Fraser encouraged the attendees to \u201caid the city in deregulating the industry.\u201d<\/p>\n 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\u2019ll lose enthusiasm for such an initiative, as he did four years ago.<\/p>\n<\/p><\/div>\nNew York City As A Bitcoin And Crypto Sanctuary City<\/h2>\n
Now Is The Time To Pass Crypto Legislation In New York State<\/h2>\n
Other Suggestions For Crypto Applications From The Attendees<\/h2>\n
Call To Action<\/h2>\n