New York City’s Comptroller has dismissed a proposal by Mayor Eric Adams to support municipal bonds using bitcoin, labeling it as “legally questionable and fiscally irresponsible.”

Comptroller Brad Lander, who manages the city’s debt issuance, turned down the proposal shortly after Adams presented the idea at a bitcoin conference in Las Vegas. Lander expressed concerns that cryptocurrency lacks the stability necessary to fund infrastructure, affordable housing, or educational institutions, stating that the initiative could undermine investor trust and conflict with federal tax regulations.

Although Mayor Adams is striving to position New York as a leader in the cryptocurrency sector—including converting paychecks into crypto and establishing a digital asset advisory council—Lander opposed the initiative as it might involve utilizing funds to purchase bitcoin (BTC). He emphasized that the city’s borrowing framework is predicated on the U.S. dollar, indicating that any variation demands methods that the city currently lacks, such as cash conversions for public expenditures.