SEC and NYC Signal Strategic Embrace of Blockchain Technology

In a pivotal week for US crypto policy, Securities and Exchange Commission Chair Paul Atkins and New York City Mayor Eric Adams outlined major new initiatives aimed at integrating blockchain technology and digital assets into both federal regulation and urban innovation. Atkins, testifying in one of his first public hearings since taking office, reaffirmed his commitment to prioritizing digital asset oversight, while Adams announced the formation of a Digital Advisory Council to attract investment and make New York the world’s leading crypto hub. New York City Aims to Become Global Crypto Capital with New Digital Advisory Council New York City Mayor Eric Adams is pushing forward with his long-standing digital asset agenda, announcing on Monday the formation of a new Digital Advisory Council aimed at establishing the city as the “crypto capital of the globe.” Speaking at the inaugural New York City Crypto Summit on May 20, Adams emphasized the importance of integrating blockchain technology into civic life, not as a passing trend, but as a foundational shift for New York’s digital future. While specific details remain under wraps, Adams said the council would be composed of local experts and fintech leaders, with a council chair and formal policy recommendations expected in the coming weeks. Mayor Adams made it clear that this initiative is about more than branding. He envisions blockchain technology playing a direct role in city governance and public services. One of the proposals under consideration is enabling New Yorkers to pay for certain municipal services and taxes using cryptocurrencies, a move that would align the city with broader state-level legislative efforts already underway. Adams also floated the idea of using blockchain to safeguard sensitive documentation, such as birth and death certificates, in a secure yet accessible format. This latest push follows a May 12 announcement that financial services company Figure and private equity firms Traction and Scale would assist in the city’s broader blockchain adoption efforts. These firms bring fintech, tokenization, and asset management experience to the table, suggesting the advisory council may focus on more than just payments and records. It may also evaluate tokenized infrastructure, digital identity, and blockchain-based capital formation strategies. The mayor’s commitment to crypto and Web3 initiatives isn’t new. Since taking office in January 2022, Adams has consistently promoted the city’s adoption of digital assets—famously opting to receive his first three paychecks in Bitcoin as a gesture of support. State-Level Momentum but Limited Progress While Adams takes the initiative on the city level, several New York State legislators have also attempted to advance digital asset policy statewide. In April, Assemblyman Clyde Vanel introduced a bill allowing state agencies to accept crypto payments. Earlier, in February, State Senator James Sanders Jr. proposed the Blockchain Study Act, aimed at forming a task force to assess the state’s blockchain landscape. However, both bills remain in legislative limbo and have yet to advance through either the state Senate or Assembly. These developments come amid a broader trend of US states positioning themselves for the crypto economy. At least 18 states are considering proposals to establish strategic Bitcoin reserves, and New Hampshire and Arizona have already passed related legislation, according to data from Bitcoin Reserve Monitor. States pushing for Bitcoin reserves (Source: Bitcoin Reserve Monitor ) Mayor Adams’ commitment to crypto faced scrutiny after he was indicted on corruption charges tied to alleged illegal campaign contributions from the Turkish government. However, in a surprising turn of events, the US Justice Department directed local authorities to drop the charges, and the case was formally dismissed with prejudice on April 2. Despite the controversy, Adams has used the clearing of his name as a springboard to reassert his policy platform, which he says is centered on economic inclusion, technological equity, and digital transformation. Crypto Summit Marks Turning Point The New York City Crypto Summit, where Adams made his announcement, marks the city’s most formal step toward integrating the crypto industry into its public and economic systems. The summit included representatives from fintech startups, blockchain developers, venture capital firms, and policymakers, signaling a concerted effort to position the city competitively against other global crypto hubs like Dubai, Singapore, and London. With new collaborations, a policy council in motion, and continued legislative efforts at the state level, New York City is setting the stage to reclaim its tech dominance. The crypto industry, long skeptical of New York’s historically strict regulations, may find renewed optimism in Adams’ approach, which blends regulatory realism with a pro-innovation stance. The next steps include finalizing the Digital Advisory Council’s structure and releasing policy recommendations—expected before the end of Q2 2025. In parallel, pilot programs for blockchain-based document security and crypto tax payment systems are reportedly under internal review. Whether these plans will translate into meaningful infrastructure, and actual adoption, remains to be seen. But one thing is clear: New York is back in the conversation, and this time, it’s speaking the language of tokenization. New SEC Chair Paul Atkins Pledges Crypto Reform as GENIUS Act Gains Momentum In related news, US Securities and Exchange Commission (SEC) Chair Paul Atkins appeared before lawmakers on May 20 in a highly anticipated congressional oversight hearing, making his position clear: the future of digital asset regulation will be one of his top priorities. Testifying before the House Appropriations Committee, Atkins addressed a slew of questions ranging from regulatory funding transparency to interagency collaboration. While measured in tone, his remarks confirmed that the SEC is preparing to pivot away from the enforcement-heavy stance of past leadership and toward a more structured, collaborative framework for regulating cryptocurrencies, stablecoins, and decentralized finance (DeFi). Paul Atkins at a May 20 SEC oversight hearing (Source: House Appropriations Committee ) A New Tone at the Top Atkins’ appointment in April, under the nomination of President Donald Trump, was widely seen as a turning point for US digital asset regulation. A former SEC commissioner himself, Atkins brings both institutional credibility and industry-friendly leanings to the role. His early actions have signaled an effort to realign the SEC’s approach to crypto with market realities and innovation imperatives. This hearing marked his first major public appearance since assuming the role and came just a day after the US Senate moved forward on a vote to consider the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act)—a landmark piece of legislation that could redefine stablecoin oversight. Lawmakers pressed Atkins on the status of the SEC’s Crypto Task Force, helmed by Commissioner Hester Peirce, and sought specifics on its budget, timeline, and objectives. Representative Chuck Edwards (R-NC) asked directly how much funding had been allocated to the task force, a question Atkins declined to answer directly, saying only that the findings were “still under development.” Though vague on numbers, Atkins confirmed the task force’s first formal report is expected within the coming months. This report, he hinted, will lay the groundwork for clearer guidance on token classification, disclosures, custody frameworks, and potentially even DeFi-specific protocols. Upcoming June Roundtable Signals DeFi Focus The SEC is also organizing a series of roundtable discussions with commissioners and private sector leaders, the next of which is scheduled for June 9 and will focus specifically on decentralized finance (DeFi). These forums are expected to influence the Commission’s internal rulemaking discussions and could set the stage for tailored regulation that distinguishes DeFi from centralized crypto platforms. Sources close to the SEC suggest that these roundtables are part of a broader strategy to rehabilitate the agency’s relationship with the digital asset sector, which has long criticized the SEC for pursuing regulation through enforcement rather than engagement. Atkins’ remarks coincided with major movement in the US Senate on the GENIUS Act, which aims to create a national framework for stablecoin issuance, reserve audits, and regulatory jurisdiction. Under the act, stablecoin oversight would be clarified and shared between the SEC and the Commodity Futures Trading Commission (CFTC), with the Federal Reserve overseeing reserve asset integrity. The bill is part of a wave of crypto-related legislation currently under discussion in Congress, including proposals for tax deferrals on digital asset transactions, definitions for decentralized autonomous organizations (DAOs), and digital identity protection using blockchain technology. Atkins signaled alignment with the GENIUS Act’s objectives, suggesting the SEC would welcome legislative clarity that delineates its role in overseeing specific digital asset classes, particularly stablecoins and security tokens. From SEC Limbo to Regulatory Momentum Atkins’ prior statements have been critical of the regulatory vacuum that the crypto market has found itself in under past administrations. Now, with increasing alignment between legislative efforts and SEC reform, the prospect of a more stable and transparent regulatory framework for US crypto markets is closer than ever. Industry groups including the Blockchain Association, Coin Center, and Crypto Council for Innovation have cautiously welcomed Atkins’ leadership, noting his willingness to engage constructively with both innovators and lawmakers.