Encouragement from incoming New York City Mayor Eric Adams is a positive indication for crypto businesses trying to establish a presence in the city.
Despite these encouraging indicators, some are questioning whether he will have the authority to enact more rigorous state rules.
In addition, Adams is up against competition from other American communities vying for the title of future crypto hub.
Companies were invited to participate
Ava Labs, a cryptocurrency and blockchain start-up, had been undecided about where to locate because of a lack of options.
However, company president John Wu stated that Adams’ election played a “significant role” in his decision to establish in New York.
“Knowing that we have a supportive government, especially in the New York City area, would be pretty useful,” Wu said.
Last year, cryptocurrency data firm Chainalysis doubled down on its New York City pick, signing a deal for a Manhattan office space that can house up to 200 people.
Michael Gronager, co-founder and CEO of Chainalysis, said, “The incoming mayor’s support for the industry validates my opinion that New York is the best place for Chainalysis’s headquarters.”
Is there a regulatory effect?
Following his election, Adams came out in favor of cryptocurrencies, proposing to pay his first three months’ salary in Bitcoin and recommending that local schools teach pupils about cryptocurrency and blockchain technology.
Adams also expressed interest in creating a digital wallet for municipal employees and public benefit recipients, prompting CityCoins to launch NYCCoin as its next initiative.
Despite the fact that he has yet to propose any specific legislation that would provide a meaningful incentive for crypto companies to come, some say his optimistic attitude has already proven effective.
“I think it’s a very good signaling tool to… say, ‘OK, we understand that this industry can benefit everyone,'” Zach Dexter, CEO of FTX U.S. Derivatives, a crypto derivatives exchange, said.
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