Radical leftist Mamdani elected New York mayor… Will it affect the virtual asset market?

Joran Mamdani, a New York state lawmaker classified as a radical leftist in the U.S. Democratic Party, has been elected mayor of New York. Attention is focusing on what his administration in New York, the financial and blockchain industry hub, will mean for the virtual asset (cryptocurrency) market.

On the 4th (local time), the virtual asset-focused outlet Cointelegraph reported that Mamdani defeated Andrew Cuomo, a former New York governor who ran as an independent, and Republican candidate Curtis Sliwa to win. Mamdani campaigned on cost-of-living issues such as rent and childcare, and said he would raise funds by imposing additional taxes on the top 1% of high-income earners.

The virtual asset industry has expressed concern about Mamdani's victory. Tyler Winklevoss, Gemini co-founder, criticized his anti-business tax policies. He pointed out, "(New York's college students) have never learned the values of Western civilization, so they don't know why they should fight for it."

Sean McGuire, a Sequoia Capital partner, unleashed a stream of vitriolic criticism mixed with Islamophobia toward Mamdani. He said, "The West will learn this lesson the hard way." Hedge fund manager Bill Ackman is also reported to have donated $1.25 million to a political action committee (PAC) to try to prevent Mamdani's election.

Mamdani's stance on virtual assets is unclear. Unlike his rivals Cuomo and Sliwa, who said they would support the virtual asset industry, he did not make particular mention of fostering the industry or easing regulations. Previously, in 2023, he supported a consumer protection bill introduced by New York Attorney General Letitia James after the Terra-Luna and FTX incidents, and said, "The victims of virtual asset collapses are not the wealthy but low-income people and communities of color." That is the only notable statement.

Experts say the New York mayor has limited scope to directly influence virtual asset policy. They analyze that regulatory authority is concentrated at the federal and state levels, making it difficult for the city to pursue policy independently. However, they assess there remains a possibility of some impact on the industry through indirect factors such as prices, real estate, and electricity usage.

Mamdani is scheduled to take office on January 1 next year.