Former New York Governor Andrew Cuomo trails significantly behind Democratic frontrunner Zohran Mamdani, despite revealing his proposal to transform the city into a crypto hub.
Cuomo’s initiative, announced on Sunday, aims to establish a new office dedicated to attracting emerging tech firms, including those in cryptocurrencies and blockchain.
This action is in line with previous efforts by outgoing Mayor Eric Adams, which have produced mixed outcomes. The mayor’s office indicated the emergence of many crypto startups in New York, yet existing crypto businesses have not experienced substantial changes. Critics have pointed out that the mayor’s office has limited sway over the evolution of the crypto industry.
As the mayoral election approaches in two weeks, Cuomo’s late attempt to win over the crypto sector may not suffice to surpass the frontrunner.
Cuomo’s crypto strategy in light of a Mamdani lead
Cuomo’s campaign declared on Sunday that, if elected, he would institute a “chief innovation officer” within his administration aimed at boosting business in emerging technologies. Additionally, he’d create an “Innovation Council,” featuring executives from blockchain, biotech, and artificial intelligence sectors.
Cuomo stated, “The next mayor must ensure that we are at the forefront of the technologies defining the next century—AI, blockchain, and biotech. This position aims to keep New York City not just competitive but dominant in the global innovation economy.”
The push toward the crypto lobby is logical, given that crypto lobbying groups shattered campaign funding records in the 2024 elections and made digital asset regulation a key concern for lawmakers in Washington.
The Winklevoss twins, who have reportedly contributed over $30 million this year to crypto lobby associations, have also openly criticized Cuomo’s main rival, Democrat Zohran Mamdani.
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In a lengthy June post on X, Tyler Winklevoss denounced Mamdani and Democrats in general, questioning his potential involvement in the NYC mayor race.
He claimed that Democratic cities function as “broken kleptocracies” and warned of a progression towards “anarchy and socialism.” He asserted that financiers and hedge fund managers have not successfully “preserved the system that enabled their initial successes and made New York City once the greatest city worldwide.”
These financial figures, including pro-crypto Pershing Square CEO Bill Ackman, have reportedly donated millions to Cuomo’s campaign in the past weeks.
However, appealing to crypto-supportive hedge funds may not significantly alter Cuomo’s standings. A recent AARP poll shows Mamdani with a double-digit lead at 43.2%, with Cuomo at 28.9%, Guardian Angels founder Curtis Sliwa at 19.4%, and 8.4% undecided or favoring other candidates.
Crypto concerns did not top respondents’ priorities. “The cost of living is the main issue for almost two-thirds of voters, with public safety and housing affordability also significant. Despite worries about the city’s future, optimism for improvements under new leadership has slightly risen since the August poll,” the AARP reported.
Wall Street’s sentiment isn’t wholly negative regarding a potential Mamdani mayorship. Recent assessments from Business Insider indicated considerable support for Mamdani within “back office” roles. While wealthier management positions tended to favor Cuomo, peers in tech, HR, operations, and intelligence displayed a strong inclination towards Mamdani.
How can the NYC mayor impact crypto?
Even in an improbable scenario where Cuomo clinches victory on Nov. 4, the mayor’s office has limited capacity to influence crypto policy.
Outgoing Mayor Eric Adams endeavored to establish the city as a crypto hub, initially showcasing his belief in cryptocurrencies by accepting his paychecks in Bitcoin (BTC) and opposing state-level crypto mining moratoriums. In February 2023, the city council’s technology committee convened to deliberate on blockchain, cryptocurrency, and other cutting-edge digital tools.
Related: Is Zohran Mamdani really detrimental for New York’s crypto sector?
Despite efforts, few felt that Adams fulfilled that promise by 2024. Thomas Pacchia, founder of the NYC-based Bitcoin bar PubKey, conveyed to Cointelegraph that he observed little shift in public perception.
Nonetheless, Adams persisted in trying to engage the crypto sector, hosting a crypto summit earlier this year with top executives. In May, the New York Office of Technology and Innovation (OTI) informed Cointelegraph that “crypto and blockchain represent our fastest-growing tech sectors, in terms of startups.”
Recently, Adams announced the formation of the New York City Office of Digital Assets and Blockchain, aimed at “fostering innovation and development while guiding the responsible evolution of cryptocurrency and blockchain ecosystems in New York City.”
The OTI claimed, “Since 2019, crypto startups have surged by 177%, and blockchain startups by 143%. New York City boasts 172 crypto startups compared to 151 in San Francisco. NYC also leads with 262 blockchain startups against 251 in San Francisco.”
But the extent to which this growth stems from city-level crypto initiatives remains uncertain. The mayor’s office wields significant power over vital business matters like municipal taxes, licensing, and building permits; however, financial regulations and frameworks are largely determined at the state and federal levels.
Regardless of whether the next mayor, Cuomo or Mamdani, seeks to influence the crypto arena, they will likely need to navigate through state regulators first.
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