- Mayor Adams urges the end of New York’s restrictive BitLicense.
- Crypto firms back the move, citing barriers to innovation.
- Final repeal lies in the hands of state lawmakers and NYDFS.
New York City Mayor Eric Adams, known for his pro-crypto stance, is now targeting one of the most controversial regulations in the digital asset space: the BitLicense. Speaking at a recent crypto industry event, Adams questioned the effectiveness of the BitLicense regime and suggested it might be time to phase it out.
The BitLicense, issued by the New York Department of Financial Services (NYDFS), has long been criticized as overly restrictive. It requires companies to secure a special license to operate with virtual currencies in New York. Many crypto startups have avoided the state entirely due to its regulatory hurdles.
BitLicense Seen as Barrier to Innovation
Adams argued that the regulation is driving businesses away and stifling innovation. “It’s stifling growth,” Adams said. “It’s pushing companies out of our city and state.”
Introduced in 2015, the BitLicense was designed to create a regulated framework for digital currency companies. However, critics say it has done more harm than good. As of now, only a limited number of firms have successfully acquired the license, while others have pulled out of New York altogether.
Mayor Adams has long positioned himself as a crypto-friendly leader. He famously accepted his first three paychecks in Bitcoin and Ethereum and has often spoken about turning New York into a hub for Web3 innovation.
By calling for the end of the BitLicense, Adams is aligning himself with the growing sentiment in the tech community that New York is falling behind other states like Florida and Texas, which have more relaxed crypto regulations.
Crypto Leaders Back Adams’ Proposal
Industry insiders welcomed Adams’ remarks. Several Web3 founders and crypto VCs voiced support, saying the elimination of the BitLicense would make New York a competitive destination for blockchain businesses again.
One founder noted, “It’s nearly impossible to launch a crypto company in NYC. The BitLicense makes the entire process expensive, slow, and uncertain.”
While Adams’ proposal has made headlines, changing or repealing the BitLicense is beyond the mayor’s authority. The NYDFS and state lawmakers would need to act.
Still, Adams’ public challenge may spark renewed debate in Albany, especially with growing interest in Web3 economic development. In the meantime, his comments send a clear signal to entrepreneurs: New York City wants your blockchain business.
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