New York State elections are heating up! Cuomo promises to support Crypto Assets, can this reverse the polling deficit against Mamdani?

As the mayoral campaign between Andrew Cuomo and Zohran Mamdani heats up in New York State, Cuomo vows to turn New York City into a center for encryption and AI innovation. However, Polymarket polls show that Mamdani still maintains a lead.

Cuomo promises to establish a Chief Innovation Officer to build an encryption capital

According to Eleanor Terrett, host of the Crypto America program, Cuomo plans to appoint a Chief Innovation Officer (CIO). This position will develop a comprehensive innovation agenda that integrates encryption, artificial intelligence (AI), and biotechnology into a citywide strategy. In the New York state election, this is a key policy that distinguishes Cuomo from his opponents.

Three Main Responsibilities of the Chief Innovation Officer:

Coordinating technology-focused initiatives among various city agencies: Breaking down departmental barriers to promote inter-agency collaboration.

Simplifying the Adoption of New Technologies: Reducing bureaucratic barriers to accelerate the implementation of blockchain and AI projects.

Attracting Investment and High-Skilled Jobs: Providing tax incentives and regulatory conveniences to compete with Silicon Valley for talent.

The committee will provide recommendations for the city on regulatory measures, workforce development, and reducing bureaucratic obstacles for emerging industries. Cuomo's campaign is promoting a plan for modernizing New York City's infrastructure and governance, positioning it as a competitor to Silicon Valley in terms of innovation and economic competitiveness.

However, since this statement was made in the atmosphere of campaign excitement, it cannot be ruled out that Cuomo would say anything to attract potential voters, just as Trump utilized the encryption narrative before the November 2024 election. Social media users questioned, “If the Chief Innovation Officer really has power, then this position is not bad. Otherwise, it's just a title.” This skepticism reflects voters' fatigue with political promises, especially in the encryption industry, where many politicians have made commitments but ultimately failed to deliver.

In the New York state election, Cuomo's encryption policy targets young voters and technology industry professionals. New York City has the financial foundation of Wall Street, but it lags behind cities like Miami and Austin in blockchain and encryption innovation. If Cuomo's policies can be implemented, New York City may reclaim its leadership in technological innovation. However, whether these policies can be realized is another matter, especially considering New York's complex bureaucracy and regulatory environment.

Nevertheless, it cannot be ignored that Eric Adams' withdrawal will give Cuomo a competitive advantage, even though he is not as actively advocating for encryption as Adams. During his term, Adams promised to turn New York into the capital of encryption and even took his salary in Bitcoin, but was forced to withdraw from the race due to corruption scandals, creating a power vacuum in the New York state elections.

The scandal of overseas exchanges becomes Cuomo's biggest burden

(Source: Bloomberg)

At the same time, this is not the first time this former governor has been involved with the encryption field; his experience is quite complex. A Bloomberg report in April showed that Cuomo had served as a paid advisor to an overseas encryption exchange, which was then facing federal investigations by the FBI and the Southern District of New York. According to reports, Cuomo provided consulting to the Seychelles-based exchange on policy issues and legal responses to the investigation.

More controversially, Cuomo also encouraged the company to hire his former ally, former New York Department of Financial Services head Linda Lacewell, who later became the chief legal officer of the exchange. This personnel arrangement has raised questions about conflicts of interest, with critics arguing that Cuomo leveraged relationships established during his public office to benefit private clients.

Earlier this year, the exchange reached a settlement with the U.S. Department of Justice, paying $504 million for compliance violations and unauthorized U.S. trading, bringing the investigation to a climax. This hefty fine indicates that the exchange's violations are extremely serious, including allowing U.S. users to trade without registration, failing to implement proper anti-money laundering measures, and providing misleading information during regulatory inquiries.

Cuomo's spokesperson defended his work in the private sector, claiming that he did not represent clients in New York City or state government agencies and often recommended qualified colleagues for positions. However, this defense is difficult to fully dispel public concerns. In the New York state election, Cuomo must explain to voters why he was able to consult for an exchange that was later fined $504 million, yet still qualified to lead New York City's innovation agenda.

Cuomo's deep involvement in the cryptocurrency industry may enhance his political ambitions while also complicating them further. On one hand, his experience with global exchanges has earned him a reputation in New York's notoriously complex regulatory environment, giving him insights into the actual operations and pain points of the encryption industry. On the other hand, critics may question his associations with non-compliant businesses.

Mamdani faces tough challenges ahead of Cuomo

However, Cuomo must defeat Zoran Mamdani, who still maintains a significant lead in the Polymarket poll. Mamdani is a New York State Assembly member with a left-leaning political stance, advocating for social justice and economic equality, which sharply contrasts with Cuomo's tech innovation agenda. The poll gap indicates that Cuomo's encryption policy, while appealing to the tech community, has yet to persuade the broader electorate.

As voters weigh the balance between innovative promises and ethical and regulatory issues, Cuomo's technology advancement agenda could enhance credibility or backfire. Whether support from the encryption industry can translate into votes, and whether the overseas exchange scandal is a fatal blow, these questions will be answered in the New York state election.