Zohran Mamdani elected as New York City mayor, Cuomo Blockchain Innovation Officer plan collapses

Democratic Socialist Zohran Mamdani defeated former New York State Governor Andrew Cuomo, who had long served in the Democratic Party, in the New York City mayoral race. Mamdani led in the polls with 50.6% support compared to Cuomo’s 41.2%. Previously, Cuomo announced plans to establish a Chief Innovation Officer position to lead New York City’s blockchain and cryptocurrency innovation efforts. Now, this new official plan has been shelved.

Cuomo’s Blockchain Chief Innovation Officer Plan Fails

(Source: Associated Press)

Last month, Cuomo announced a plan to create a Chief Innovation Officer role to oversee blockchain and cryptocurrency innovation in New York City. Cuomo stated that this high-level administrative position would focus on ensuring New York City supports emerging industries and leveraging new technologies to promote public-private partnerships. This proposal was a core part of Cuomo’s campaign strategy to attract support from the tech industry and crypto communities.

The responsibilities of the Chief Innovation Officer would include: developing New York City’s blockchain and cryptocurrency industry development strategies, coordinating city government support for crypto enterprises, fostering collaboration between traditional businesses and blockchain companies, attracting crypto firms and investors to establish headquarters or offices in New York, and promoting blockchain technology applications in municipal services (such as land registration, voting systems, public records, etc.). Such a senior dedicated official position is extremely rare in major U.S. cities, indicating Cuomo’s emphasis on the crypto industry.

However, with Cuomo’s defeat, this plan has been abandoned. As a Democratic Socialist, Mamdani’s policy priorities are more focused on social equality, housing, healthcare, and other traditional left-wing issues, and his interest in cryptocurrency and blockchain innovation may be far less than Cuomo’s. This is a significant blow to New York’s crypto industry, as it loses a potential strong supporter at the city government level.

Rebecca Liao, co-founder and CEO of Saga, described Cuomo as a “establishment Democrat.” Saga is a Web3 and artificial intelligence protocol. Liao told The Block, “Establishment Democrats have historically maintained good relations with the tech industry; they want to find ways to promote technological development.” Liao was also a member of President Joe Biden’s 2020 presidential campaign team. This background gives her an in-depth understanding of the different factions within the Democratic Party.

Liao said that for Mamdani, cryptocurrency is not yet a sufficiently important issue for his core audience. Democratic Socialist voters mainly consist of young people, minorities, and working-class individuals who are more concerned with rent control, minimum wages, public healthcare, and other tangible issues, with limited interest in emerging financial tools like cryptocurrencies. Therefore, Mamdani hardly mentioned crypto policies during his campaign and made no related promises.

Potential Impact of Mamdani’s Democratic Socialist Stance on the Crypto Industry

Cuomo lost to Mamdani in the summer Democratic primary and subsequently decided to run as an independent candidate for mayor. This strategy of transitioning from a primary loser to an independent candidate is uncommon in New York politics, showing Cuomo’s unwillingness to give up and his attempt to leverage his name recognition and resources for a comeback. However, he ultimately could not reverse his disadvantages.

As a Democratic Socialist, Mamdani’s political stance may conflict with the free-market principles favored by the crypto industry. Democratic Socialism emphasizes government regulation and intervention in the economy, restrictions on large corporations and the wealthy, and protections for vulnerable groups. This ideology could lead Mamdani to adopt stricter regulations on the crypto industry, especially regarding consumer protection, anti-money laundering, and tax compliance.

Nevertheless, there is room for optimism. Democratic Socialists are not opposed to all innovation; they oppose unregulated capitalism and widening income inequality. If the crypto industry can demonstrate its positive impact on ordinary people—such as reducing remittance costs, providing financial services to the unbanked, and creating jobs—Mamdani might adopt a more open attitude. The key depends on how the industry communicates and builds relationships with the new mayor.

In terms of policy priorities, Mamdani may focus resources on his core issues, and the crypto industry might not receive special support but also not face outright suppression. The most likely scenario is “benign neglect”—the city government neither actively promotes nor actively restricts crypto, allowing enterprises to operate freely within existing legal frameworks. While this neutral environment is less ideal than Cuomo’s proactive support, it is not the worst outcome.

Mamdani vs Cuomo Crypto Positions Comparison

Cuomo’s stance: Explicit support, plan to establish a Chief Innovation Officer to lead blockchain innovation

Mamdani’s stance: Did not explicitly state during campaign, crypto is not a core issue

Cuomo’s voter base: Establishment Democrats, business community, tech industry

Mamdani’s voter base: Democratic Socialists, young voters, working class

Impact on industry: Shift from active support to uncertainty, cancellation of the innovation officer plan

Adams’ Withdrawal and the Continuity of New York’s Crypto Policy

Current New York City Mayor Eric Adams Log Out of the race in September, citing campaign funding issues and media speculation as main reasons for his pause. Adams has been a strong supporter of cryptocurrencies, with his first three salaries paid in Bitcoin. In October, he signed an executive order establishing an office focused on digital assets and blockchain, marking the “first such mayor’s office in the nation.”

Adams’ withdrawal is a significant loss for the crypto industry. As the incumbent mayor, he had already built a municipal infrastructure supporting crypto, including a dedicated office, channels for dialogue with the industry, and a series of friendly policies. If Adams had been re-elected, these policies could have continued and deepened. His withdrawal, however, risks interrupting these efforts.

The key question is: Will Mamdani retain Adams’ digital assets office? If retained, this office would continue serving as a bridge between the crypto industry and the city government. If dismantled or marginalized, New York’s crypto-friendly image could suffer. Mamdani has not yet commented on this, and the crypto industry is closely watching his transition team’s personnel appointments and policy signals.

From a broader perspective on U.S. crypto policy, federal policies (White House, SEC, CFTC) have been relatively friendly under the Trump administration, but state and city attitudes remain crucial. As a global financial hub, New York City’s mayoral stance influences where companies choose to locate. If Mamdani adopts a hostile or indifferent approach, some crypto firms might relocate to Miami, Austin, or other more friendly cities.

New Jersey Governor Election and the Influence of Crypto Voters

Liao mentioned that the New Jersey governor election is also worth watching. According to multiple news outlets, Democratic candidate Mikie Sherrill defeated Republican Jack Ciattarelli with 57% to 42.4% of the vote. The crypto advocacy organization “Stand with Crypto” stated they are “mobilizing New Jersey’s crypto voters to play a key role in the election.”

“Notably, New Jersey has over 80,000 ‘crypto supporters’—almost matching the total votes from the last New Jersey governor’s race,” the organization said in a statement on Monday. “These crypto voters could be a decisive swing factor in determining the next governor.” They added that crypto supporters helped Sherrill secure the Democratic nomination in June and noted, “Support for cryptocurrencies resonates with Democratic voters.”

“Stand with Crypto,” known for its strong support of cryptocurrencies, gave Sherrill an A grade and listed her previous votes on crypto-related legislation. They did not rate Ciattarelli but cited a July article he published on X, emphasizing the need to mainstream cryptocurrencies.

The New Jersey case demonstrates that crypto voters as a group are beginning to show political influence. While 80,000 voters may seem insignificant in a total election turnout of millions, they could be pivotal in close races. The mobilization capacity of “Stand with Crypto” is also increasing, from voter education and candidate ratings to election day mobilization, forming a comprehensive political action chain.

However, the results of the New York City mayoral race show that crypto voters’ influence remains limited. Although Cuomo received support from the crypto community, he lost by nearly 10 percentage points. This indicates that, for most voters, crypto policies are not decisive factors; traditional issues like the economy, public safety, education, and housing still dominate. To truly influence election outcomes, the crypto industry needs to expand its voter base from tens of thousands to hundreds of thousands or even millions.

In the long term, as cryptocurrency adoption increases, the number and influence of crypto voters will continue to grow. When 10-20% of voters in a state or city hold or use cryptocurrencies, candidates will have to seriously address this group’s concerns. Currently, about 50 million Americans hold crypto assets, roughly 15% of the total population, but the proportion of voters who consider crypto policies in their voting decisions is much lower. Organizations like “Stand with Crypto” aim to activate these potential crypto voters, turning them into organized political power.

For New York’s crypto industry, Mamdani’s election introduces uncertainty but also an opportunity to reposition and communicate. The industry needs to demonstrate how crypto technology can serve core concerns such as financial inclusion, economic equality, and transparent governance, rather than just being a tool for the wealthy’s speculation. Successfully establishing this connection could lead Mamdani’s government to be less hostile than expected. Failure to communicate effectively might result in New York falling behind cities like Miami and Austin in crypto innovation.