Zohran Mamdani has won the New York City mayoral election. His record on cryptocurrency suggests potential for tighter oversight in the sector. He has supported consumer protection measures following the collapses of FTX and Terra, highlighting risks faced by small investors.

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Mamdani also co-sponsored an Assembly Bill seeking a moratorium on proof-of-work crypto mining that uses on-site energy generation. A proposed crypto transaction tax in New York could generate around $158 million annually.

Campaign Funding, Crypto Influence Shape Election

Mamdani, 34, is a democratic socialist. His platform emphasizes consumer protection, transparency, and regulation rather than rapid market growth. During the campaign, he focused on cost-of-living issues such as rent and childcare, proposing taxes on the city’s wealthiest 1% to fund these initiatives.

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Andrew Cuomo had positioned himself as a pro-crypto candidate, pledging to make New York a global hub for digital assets and artificial intelligence. His campaign drew scrutiny after Bloomberg reported his paid advisory work for crypto exchange OKX, which later settled a $504 million federal compliance case.

High-profile crypto figures and organizations, including Tyler Winklevoss and Innovate NY PAC, publicly opposed Mamdani, while hedge fund donations supported Cuomo’s campaign.

When crypto companies collapse, it isn’t the rich who suffer, it’s small investors who disproportionately come from low-income and communities of color.
@NewYorkStateAG has a bill to address this and protect New York investors.

Let’s do it! https://t.co/z0lCuPzkK9

— Zohran Kwame Mamdani (@ZohranKMamdani) May 11, 2023

City Rules Indirectly Affect Cryptocurrency Operations

Experts note the mayor’s influence over cryptocurrency is limited. Securities and finance laws are controlled by state and federal authorities. City-level powers, such as municipal taxes, licensing, and permits, could affect the industry indirectly.

Most crypto firms operate lightly and are less sensitive to local pressures, although energy-intensive activities like Bitcoin mining remain an exception.

Prediction Markets Correctly Forecast Mamdani Victory

Prediction markets, including Polymarket, had forecast Mamdani’s win with 92% accuracy. The result has drawn attention from both critics and supporters in the crypto sector.

How and whether Mamdani’s policies will directly affect cryptocurrency businesses in New York City remains uncertain. Any challenges for the industry are expected to emerge gradually, given the limited city-level powers.