Zohran Mamdani has won the New York City mayoral election.His record on cryptocurrency suggests potential for tighter oversight in thesector. He has supported consumer protection measures following the collapsesof FTX and Terra, highlighting risks faced by small investors. Digitalassets meet tradfi in London at the fmls25Mamdani also co-sponsored an Assembly Bill seeking amoratorium on proof-of-work crypto mining that uses on-site energy generation.A proposed crypto transaction tax in New York could generate around $158million annually.Campaign Funding, Crypto Influence Shape ElectionMamdani, 34, is a democratic socialist. His platformemphasizes consumer protection, transparency, and regulation rather than rapidmarket growth. During the campaign, he focused on cost-of-living issues such asrent and childcare, proposing taxes on the city’s wealthiest 1% to fund theseinitiatives.Andrew Cuomo had positioned himself as a pro-cryptocandidate, pledging to make New York a global hub for digital assets andartificial intelligence. His campaign drew scrutiny after Bloomberg reportedhis paid advisory work for crypto exchange OKX, which later settled a $504million federal compliance case. High-profile crypto figures and organizations,including Tyler Winklevoss and Innovate NY PAC, publicly opposed Mamdani, whilehedge 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, 2023City Rules Indirectly Affect Cryptocurrency OperationsExperts note the mayor’s influence over cryptocurrency islimited. Securities and finance laws are controlled by state and federalauthorities. City-level powers, such as municipal taxes, licensing, andpermits, could affect the industry indirectly. Most crypto firms operatelightly and are less sensitive to local pressures, although energy-intensiveactivities like Bitcoin mining remain an exception.Prediction Markets Correctly Forecast Mamdani VictoryPrediction markets, including Polymarket, had forecastMamdani’s win with 92% accuracy. The result has drawn attention from bothcritics and supporters in the crypto sector.How and whether Mamdani’s policies will directly affectcryptocurrency businesses in New York City remains uncertain. Any challengesfor the industry are expected to emerge gradually, given the limited city-levelpowers.This article was written by Tareq Sikder at www.financemagnates.com.