In a political twist that caught many by surprise, Zohran Mamdani won the Democratic primary in New York City, defeating former Governor Andrew Cuomo and pushing ahead of pro-crypto voices like Eric Adams. While the general election still lies ahead, Mamdani’s momentum signals a potential shift in the city’s stance toward crypto policy—and it’s a shift that’s making some in the crypto world nervous.
Why Crypto Advocates Are on Edge
Despite not making crypto a central theme of his campaign, Mamdani’s progressive leanings and past comments have sparked concern across the digital asset industry. His critics argue that his support for greater oversight, especially following high-profile crypto collapses like Terra, points to a regulatory-heavy approach that may hinder innovation.
Industry leaders such as Tyler Winklevoss, co-founder of Gemini, and David Sacks, a prominent venture capitalist, have voiced concern that Mamdani could follow a “Silicon Valley crackdown” model. Sacks even described Mamdani’s win as a “wake-up call” for crypto and tech-friendly voters and warned of a more anti-business, anti-tech administration if Mamdani becomes mayor.
A Closer Look: Is Mamdani Anti-Crypto?
To be fair, Mamdani hasn’t launched an all-out attack on crypto. In fact, his most visible stance has been a call for stronger consumer protections—not necessarily a rejection of blockchain innovation. For example, he was one of several lawmakers who raised concerns about stablecoins after the TerraUSD collapse shook investor confidence in the space. His focus seems to be on transparency, risk disclosures, and preventing fraud, not banning crypto outright.
He also drew attention to Andrew Cuomo’s ties to OKX, a crypto exchange that paid $505 million in penalties for anti-money laundering violations. Mamdani criticized Cuomo’s role in advising the firm, saying it raised questions about accountability and ethics. Again, his approach appears to target misconduct, not the underlying technology.
What the Mayor Can (and Can’t) Do About Crypto
It’s important to note that while the New York City mayor holds influence, especially over tax policy, city contracting, and business licensing, much of the actual crypto regulation lies outside their hands. Key oversight mechanisms—such as BitLicense requirements, AML enforcement, and securities regulation—are governed by state-level bodies like the New York Department of Financial Services (NYDFS) and the Attorney General’s office.
This means Mamdani could shape the narrative and influence local business sentiment, but he likely won’t have the authority to unilaterally impose restrictions on crypto firms operating in the city.
Still, his tone and policy priorities matter. They could determine whether Web3 startups feel welcome in NYC—or decide to relocate to more business-friendly jurisdictions.
Could Mamdani Warm Up to Crypto?
Interestingly, not everyone in the industry is panicking. Some believe that Mamdani could moderate his stance if engaged proactively.
Crypto attorney Aaron Brogan suggested that early dialogue and structured advocacy—such as campaign donations, policy briefings, and stakeholder meetings—could help steer Mamdani toward a more balanced position on digital assets.
This isn’t unusual in politics. Many leaders enter office with limited knowledge of crypto, but evolve once they better understand its economic and technological value. Mamdani’s silence on many crypto-specific issues may indicate a lack of familiarity, rather than a hardline ideological stance.
What’s at Stake in the General Election
Mamdani still faces competition from Eric Adams, the current mayor known for accepting part of his salary in Bitcoin, and Curtis Sliwa, a Republican who has also expressed support for crypto innovation.
If Mamdani wins the general election, crypto businesses will need to be prepared. While he may not enact sweeping changes alone, his office could influence:
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City-level tax treatment of crypto firms
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Public-private partnerships with blockchain startups
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Whether NYC remains a Web3 innovation hub—or loses that title to places like Miami or Dubai
Some crypto-friendly PACs and donors are reportedly considering redirecting financial support to candidates seen as more favorable to the industry.
Uncertainty, but Not Alarm
Zohran Mamdani’s victory introduces a level of uncertainty for New York’s crypto future—but not necessarily a crisis. His record points more toward reform and regulation than prohibition. Still, the industry must pay attention.
This is a moment for thoughtful engagement, not retreat. The crypto sector has an opportunity to help shape Mamdani’s perspective before he potentially steps into office.
