Crypto Concerns Rise After Zohran Mamdani’s Win

Key Takeaways

• Zohran Mamdani won NYC’s Democratic mayoral primary on June 24th, unsettling many in the crypto industry.
• While Mamdani has not taken a strong anti-crypto stance, his focus on consumer protection has raised concerns.
• Crypto executives like Tyler Winklevoss and David Sacks have publicly criticized Mamdani’s platform.
• The NYC mayor’s power over crypto is limited, with most regulation coming from state-level agencies.
• Industry insiders suggest engagement, not opposition, may be the best strategy for influencing Mamdani’s approach to digital assets.

A New Political Climate For Crypto?

Mamdani, known for his left-leaning policies, has largely stayed silent on cryptocurrency throughout his campaign. However, his past positions on financial regulation suggest that a shift in the city’s approach to crypto may be possible if he wins.

Mamdani Won The NYC Mayor Primary Election Against Andrew Cuomo

Source: NYT

By contrast, Adams has vocally supported blockchain innovation, even receiving part of his salary in Bitcoin. The stark contrast between the candidates is pushing crypto advocates to take a closer look at Mamdani—and many don’t like what they see.

Backlash From Crypto Executives

Industry heavyweights haven’t held back. Tyler Winklevoss, co-founder of Gemini, labeled NYC a “broken kleptocracy” under current Democratic leadership. David Sacks, a prominent investor and tech executive, warned that Mamdani’s popularity signals a rise in “communism” and urged Silicon Valley to pay attention.

These reactions stem from Mamdani’s progressive proposals, which many crypto insiders fear could lead to increased regulation and reduced freedom for digital asset innovation.

Mamdani’s Position On Crypto

Limited Public Statements

Despite intense scrutiny, Mamdani has made few public remarks directly about crypto. During his time in the New York State Assembly, he supported Attorney General Letitia James’ calls for stronger consumer protections in the stablecoin sector following the Terra and FTX collapses.

Source: X (@ZohranKMamdani)

These stances weren’t unusual in 2023, as regulators across the U.S. sought to protect consumers in the wake of crypto scandals. Still, Mamdani’s alignment with consumer-first policies continues to draw attention from both supporters and critics.

Criticism of Opponent’s Crypto Ties

The only time crypto surfaced significantly in Mamdani’s campaign was in criticism of former mayor Andrew Cuomo’s involvement with crypto exchange OKX, which pleaded guilty to violating anti-money laundering laws.

While Mamdani’s position seems to prioritize consumer safety over deregulation, his platform doesn’t directly address crypto—leaving much to interpretation.

What Power Would Mamdani Have Over Crypto?

NYC’s Influence On Crypto Is Limited

Even if Mamdani wanted to reshape the crypto landscape, his power as mayor would be restricted. Licensing and regulation of crypto companies in New York primarily fall under the jurisdiction of the New York Department of Financial Services (NYDFS) and the state attorney general.

Although mayors influence economic development, taxes, and municipal services, any effort to regulate or support crypto would need alignment with state authorities.

Lessons from the Adams Administration

Mayor Eric Adams began his term with bold promises to turn New York into a “crypto hub.” He promoted blockchain education and floated ideas like a municipal digital wallet. However, many in the industry say these efforts never materialized in a meaningful way.

“There’s nothing that I can notice that changed,” said Thomas Pacchia, founder of PubKey, a Bitcoin bar in NYC, in late 2024. His comments reflect a broader skepticism about the actual influence a mayor can wield over the crypto sector.

Could Crypto Support Mamdani Instead?

While Mamdani is seen as a potential threat by some, others argue the industry should engage rather than oppose him. According to crypto attorney Aaron Brogan, campaign contributions and policy discussions could help shape Mamdani’s stance.

If approached constructively, Mamdani might adopt a neutral, or even cooperative, stance toward crypto as long as it aligns with consumer protection.

Election Outlook Favors Mamdani

Despite the friction, Mamdani appears to have strong momentum. Political strategist Bradley Tusk called the general election “non-competitive,” citing Adams’ low favorability and Cuomo’s weak return as an independent.

High voter turnout among younger demographics, many of whom are skeptical of big tech and financial institutions, could further boost Mamdani’s chances.

FAQ

Is Zohran Mamdani anti-crypto?

Not explicitly. While Mamdani has supported consumer protection measures, he has not taken a clear stance against crypto. His campaign has largely avoided the issue.

What does Mamdani’s win mean for NYC’s crypto future?

It introduces uncertainty. Mamdani may push for stronger oversight, but his influence is limited compared to state regulators.

Can a mayor impact crypto regulation?

Only marginally. Key regulations come from New York State entities like the NYDFS. A mayor can promote education and local adoption but cannot rewrite crypto law.

Why are crypto leaders worried about Mamdani?

His progressive views and silence on crypto policy have sparked fears of restrictive regulations or a less business-friendly environment for crypto startups.

Could the crypto lobby support Mamdani?

Yes. Some believe that by engaging with Mamdani and making contributions, the crypto sector could help shape more favorable policies.