Controller and Finance Officials Raise Skepticism Over Mayor’s 'Bit Bond' Proposal

The mayor’s announcement at a Las Vegas crypto event that the city would explore issuing bitcoin‑linked bonds — so‑called “bit bonds” — drew swift skepticism from the city’s fiscal officers during the finance hearings.

Brad Lander, the New York City Comptroller, told the committee he had learned about the idea through press reports and that the controller’s office would not support issuing bitcoin‑backed bonds on its watch. "We will not be partnering in the issuing of any Bitcoin backed bonds, on in on my watch as controller," Lander said. He said the asset class is "renowned for chaos and fluctuation" and suggested such an issue would likely fail to meet the city's longstanding criteria for capital financing.

Preston Niblack, commissioner of the Department of Finance, said he had been told of the idea and shared concerns about compliance with existing city bond‑issuance rules such as Directive 10. He noted city bonds are typically issued only to fund capital projects and that, in his view, Bitcoin is not a capital asset. Niblack also said the mayor’s office had not provided advance coordination with the finance team before a public announcement.

OMB officials told the council they are in an ideation phase with industry partners and had not yet developed a firm plan; Jacques Shishaha said the city is "in the ideation phase" and that "there is nothing concrete at this moment in time." Council members pressed for more coordination and questioned the prudence of associating municipal finances with a highly volatile asset class.

Fiscal officers emphasized that any novel financing concept would require thorough due diligence to ensure legal compliance, protect the city’s credit reputation and avoid exposing taxpayer capital to speculative risks.