Pro-Adams PAC leader banking on crypto cash

Politico

5 days ago

With help from Amira McKee
A leader of the super PAC supporting New York City Mayor Eric Adams hopes to raise upwards of $10 million from the cryptocurrency community — and has alarmed government ethics groups in the process.
In May, Eric Lerner, president of the Empower NYC super PAC, attended the same Bitcoin conference in Las Vegas where Adams traveled on the taxpayer's dime to speak.
During an on-camera interview at the event — portions of which were scrubbed from the internet after questions from POLITICO — Lerner praised the self-described 'crypto-Mayor,' favorably compared Adams to Donald Trump and predicted his super PAC could raise enough cash to make the incumbent competitive in the November general election.
'We just started a month ago. We have a lot of catching up to do,' he said. 'And with the crypto community's support, and what I'm being told soft commitment-wise, we'll be there in no time. In the next couple weeks, I figure we'll be at $5 million, $10 million.'
The PAC's cash would be a godsend for Adams, whose campaign has been hobbled by the Campaign Finance Board's decision to deny him millions of dollars in public matching funds, in part because of allegations of a straw donor scheme contained in the mayor's now defunct federal bribery case.
But the decision by the president of Empower NYC to speak about the PAC's work at the same conference that the mayor, in his official capacity, delivered a crypto-focused address on city policy has stoked discomfort inside ethics organizations.
And Lerner's comments further muddied the purpose of an official Adams administration trip that also included a campaign fundraiser at a Las Vegas restaurant, as reported by the New York Post.
The mayor's campaign denied any knowledge or involvement in the affairs of Empower NYC. And City Hall said the Las Vegas jaunt was official business and not a conflict of interest.
'The overwhelming majority of the trip was dedicated to discussing crypto policy for the city. We are aware of the Conflicts of Interest Board's guidance on separating political activities and city events, and we follow that advice,' spokesperson Kayla Mamelak Altus said.
Read more from POLITICO's Joe Anuta on the PAC backing the incumbent mayor.
HAPPY MONDAY: Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman.
WHERE'S KATHY? In Virginia and New York City with no public schedule.
WHERE'S ERIC? Schedule not available as of 10 p.m. Sunday.
QUOTE OF THE DAY: 'We credentialed a whole generation of progressives to be ready to serve in senior positions in city government. So I do think he's got a pretty deep bench to draw on.' — Former Mayor Bill de Blasio told POLITICO on Zohran Mamdani staffing up a potential administration.
ABOVE THE FOLD
PROGRESSIVE POLL SHOWS BIG MAMDANI LEAD: Zohran Mamdani would have a 16-point lead over Andrew Cuomo if the general election for New York City mayor was held today, according to a new poll released by Data for Progress, first reported in Playbook.
Forty percent of New Yorkers would vote for the Democratic nominee for mayor versus 24 percent for independent Cuomo, 15 percent for independent Eric Adams, 14 percent for Republican Curtis Sliwa and 1 percent for independent Jim Walden, the survey showed.
The poll was commissioned by the pro-Mamdani New Yorkers for Lower Costs PAC and the pro-Mamdani Working Families Party National PAC. It surveyed 756 likely voters July 1-6 using text messages and web panel responses. It had a margin of error of plus or minus 4 percentage points.
In an electorate with a younger voter surge similar to that of the June primary, democratic socialist Mamdani has an even wider lead: 44 percent would vote for him compared to 22 percent for Cuomo, the poll found.
In a data set that assumes a more traditional turnout (not one with an uptick in younger voters), 52 percent of Democrats favored Mamdani while 32 percent backed Cuomo and 8 percent supported Adams. Among independents, 42 percent would vote for Mamdani, 20 percent would back Adams and 17 would go for Cuomo. Republicans polled supported Sliwa at 58 percent, Adams at 27 percent, Cuomo at 12 and Mamdani at 3 percent.
Polls during the primary election largely missed Mamdani's meteoric rise. An exception was a survey conducted by the left-leaning Public Policy Polling in early June, commissioned by city comptroller candidate Justin Brannan and first reported by POLITICO, which had Mamdani in the lead after the first round of voting. Data for Progress's early June poll was also among the first to show Mamdani had closed Cuomo's lead.
'As unions and elected Democrats consolidate behind Zohran Mamdani, he is in a strong position against Andrew Cuomo and Eric Adams in November, both of whom the voters understand are corrupt politicians of the past grasping for support from the only place they can find it: Trump Republican billionaire donors,' WFP National PAC's Joe Dinkin said in a statement.
The Data for Progress poll also asked voters what they feel is the most important issue for a mayoral candidate. One-third of Democrats said it's housing, but less than 0.5 percent of Republicans said the same. — Emily Ngo
CITY HALL: THE LATEST
CUO-NOUNCEMENT COMING: The still-not-finished Cuomo campaign will unveil its general election plans 'soon,' spokesperson Rich Azzopardi said on Sunday.
The vow follows NewsNation (the cable news channel that employs brother Chris) reporting that the former governor wants all candidates not named Mamdani to depart the race by mid-September unless they are in the lead. It's a proposal that currently favors Cuomo, who has been placing a strong second in general election surveys.
The tactic is a clear effort to get Adams out of the race. The mayor, who has met with wealthy donors that supported Cuomo's failed Democratic primary bid, shares a base of support with the former governor.
Adams in a statement on Sunday accused Cuomo of trying to 'FORCE A BLACK ELECTED OUT OF OFFICE.' — Nick Reisman
FRIENDS IN LOW PLACES: Adams fundraised for reelection in Florida Friday, at a Fort Lauderdale event hosted by MAGA influencer Tony Delgado, founder of a group called Latino Wall Street, and Hugo Sanchez, CEO of a small video conferencing company.
A member of the Fort Lauderdale Young Republicans attended and posted photos, as did Catalina Stubbe, an organizer with conservative group Moms for Liberty, which advocates against the inclusion of LGBTQ+ content in school curricula.
The mayor has continued to embrace Trump and figures aligned with him as he runs for office on an independent line.
Adams also recorded an episode with conservative podcastster Patrick Bet-David in Florida. The trip wasn't announced by either his government or campaign team.
Delgado and Sanchez already gave Adams the $2,100 contribution limit earlier this year. In a video posted by Sanchez, Adams thanked them for helping him 'show I still had a pulse' at a time his campaign was struggling. 'Now I'm off life support,' he said, bragging that his fundraiser with real estate magnate Marc Holliday last week raised $1 million. — Jeff Coltin
COUNCIL MEMBER BACKS NYDN FIGHT: Members of the Daily News Union and the NewsGuild of New York will rally today at City Hall in support of a City Council resolution slamming the 'destructive practices' of Alden Global Capital, the hedge fund that owns the news organization. The bill to be introduced by City Council Member Carmen De La Rosa also urges Alden to strike a contract deal with the union. Alden could not be immediately reached for comment. — Ngo
More from the city:
— Inside the well-funded, likely doomed plan to stop Mamdani. (New York Magazine)
— Business leaders are pouring cash into the mayoral race to beat Mamdani, but they're unclear on who to back. (Daily News)
— NYPD Chief of Department John Chell and Deputy Mayor Kaz Daughtry brought their police security details when they visited Trump on their personal time at his Bedminster, New Jersey, golf club. (Daily News)
HOCHUL'S HAUL: The governor will report raising over $4 million in the past six months for her reelection effort. Hochul has also raised more than $7 million for the state Democratic Committee, according to her campaign.
Lt. Gov. Antonio Delgado, Hochul's lone declared challenger, will report raising $1.48 million
Hochul's fundraising haul bests the $2.3 million Cuomo raised in the comparable filing period four years ago, which was a lackluster total for the then-governor who was facing an impeachment inquiry at the time.
Hochul's haul is in the ballpark of the $5 million Cuomo raised in the first half of 2017. That's despite Hochul facing much more stringent contribution limits — while her predecessor had raised $300,000 from one donor as of that July, the current governor's donors are now capped at $25,000. The state party's haul this filing period was about 100 times larger than it was under Cuomo's leadership eight years ago.
Delgado's $1.5 million in contributions compares to the $3.6 million Republican Rep. Lee Zeldin raised in the first half of 2021. Zeldin officially launched his campaign that April, while Delgado's kickoff was in June.
Filings for gubernatorial candidates and other state-level committees are due to the state Board of Elections by tomorrow. — Bill Mahoney
HOCHUL'S BUDGET CONUNDRUM: Assembly Democrats huddled on Friday to discuss the massive federal tax-and-spend package, including a $750 million cut to the Essential Plan, which provides health insurance coverage to roughly 1.6 million New Yorkers and will take effect Jan. 1. While that's alarmed state lawmakers, they don't expect to return to Albany this fall to address what will be sweeping changes to health care spending.
'At this point, I would wager no,' Democratic Assemblymember John McDonald told Playbook.
State officials are warning the funding cuts will lead to job losses. A projected 63,000 jobs will be eliminated, nearly half from the health care sector, according to the Hochul administration.
Democratic strategists believe that's a compelling argument for Hochul to make ahead of her campaign for a second full term next year, when she faces potential GOP challenges from Reps. Elise Stefanik and Mike Lawler.
'Don't just focus on the cost of it, talk about what people aren't going to be able to do going forward,' said Basil Smikle, a former executive director of the New York State Democratic Party. 'Talk about what they'll lose. Kids aren't going to a doctor, your child is losing SNAP benefits.'
Yet Democratic state lawmakers in Albany worry there are limits to that strategy.
New York governors have vast control over the budget process and in election years typically use the spending plans to include politically friendly policies to help boost their standing with voters. Hochul is also contending with the possibility of democratic socialist Zohran Mamdani becoming New York City's next mayor. Mamdani has pressed Albany to raise taxes on wealthy people — which the governor opposes.
'You can blame the federal government all you want, but it's the state that's going to be making the cuts to the hospitals and the nursing homes and the health centers and the schools,' Democratic Assemblymember Amy Paulin said. 'It's everywhere.'
Read more from POLITICO's Liz Crampton and Nick Reisman.
TARIFF FALLOUT: The Hochul administration this morning directed state agencies to collect key data on the impact of Trump's tariffs on New York.
'It is imperative that we understand the breadth and depth of the impact of these harmful tariff policies on New York families and businesses,' a memo from Hochul's operations director Kathryn Garcia stated. 'In coordination with other states, New York will collect and report on key economic and social indicators to inform our collective response.'
The Office of General Services will produce an economic report by Oct. 31 on the financial effects of the tariffs. — Reisman
CRYPTO BILLS: A Democratic state lawmaker is urging the state's Congressional delegation to take up passage of a pair of bills this week meant to advance the crypto industry.
The GENIUS Act would create a regulatory framework for cryptocurrencies pegged to the value of the dollar. The CLARITY Act would determine regulatory oversight of the industry.
Sen. Jeremy Cooney believes both bills would aid crypto businesses in New York, which have attracted $10.6 billion in investments, according to his letter.
'Today, a patchwork of guidance and overlapping agency jurisdictions creates uncertainty, deters investment, and drives development out of state and offshore,' he wrote in the letter obtained by Playbook. 'Many of the most promising blockchain solutions are now being built outside of the United States — not because of a lack of talent or capital here in New York, but because other nations are moving more quickly to provide rules of the road.' — Reisman
SKOUFIS FILING: Democratic state Sen. James Skoufis' campaign will report more than $300,000 in contributions during the last six months, according to fundraising details shared with Playbook.
His campaign will have more than $1.3 million in cash on hand. (Notably, his money in the bank officially is $1.5 million when an undeclared statewide account is included.)
Skoufis is a four-term Hudson Valley lawmaker who represents a purple-ish seat. — Reisman
More from Albany:
— Hochul urged the Trump administration to empower the state to address weaponized drones. (New York Post)
— New York's public media organizations are warning about the impact of a rescission bill. (Spectrum News)
— The eventful summer of the acting U.S. attorney in Albany gets even stranger. (Times Union)
KEEPING UP WITH THE DELEGATION
FOR MEEKS, MEETINGS FIRST: Rep. Greg Meeks said he has many conversations ahead before he can make a decision on endorsing Mamdani, a fellow Queens Democrat.
The 15-term House member said he'll talk more not just with Mamdani, but also with Adams and Cuomo, whom Meeks endorsed in the primary.
'I have a responsibility to have a conversation with all,' he told NY1. 'I have told each that I will have a conversation with them before I make a decision of what I do. And I've got to talk to my district leaders. I've got to talk to the people that make up the county organization. I've got to get a feel for them.'
Meeks would be a major validator as the chair of the Queens Democratic Party, ranking member of the House Foreign Relations Committee and a son of southeast Queens, which includes an influential bloc of Black voters. But like other Democratic leaders including Hochul, House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer, Meeks has concerns about the democratic socialist and his policies.
'I'm setting up opportunities to have a dialogue and then have a conversation with them because my No. 1 focus is winning the House of Representatives back,' Meeks told CNN, when asked about an endorsement in the general election for mayor. Mamdani and Rep. Adriano Espaillat, who threw his weight behind the nominee last week, have similarly called retaking the House majority for Dems a top priority.
In the primaries, Mamdani performed well in southeast Queens, which was considered a stronghold for Cuomo and where Adams will be looking now to shore up support. Maps from the CUNY Graduate Center show Mamdani was able to compete more effectively on Cuomo's turf, home to many middle-class Black voters. — Emily Ngo
More from Congress:
— The GOP megabill may not be a silver bullet for Democrats in the midterms. (POLITICO)
— Rep. Mike Lawler says there won't and can't be a primary in next year's GOP race for governor. (Spectrum News)
— Schumer urges Health Secretary Robert F. Kennedy Jr. to declare a public health emergency over the spread of measles. (New York Times)
NEW YORK STATE OF MIND
— The megabill will impact tax credits for solar and geothermal energy projects. (Newsday)
— U.S. Attorney General Pam Bondi joined Nassau County Executive Bruce Blakeman on Long Island to celebrate a new police training facility. (LI Herald)
— New York City Council bills pushing for more public bathrooms and drinking fountains become law. (Gothamist)
SOCIAL DATA
MAKING MOVES: Polly Trottenberg, who was a U.S. Transportation Department deputy secretary and NYC Transportation Department commissioner, is set to be dean of NYU's Robert F. Wagner Graduate School of Public Service. She'll start on Aug. 1. … Thomas Foley wraps up a 30-plus-year career at the NYC Department of Design and Construction, where he climbed the ranks to be commissioner. (SI Advance) … José Bayona, who led the NYC Office of Ethnic and Community Media, is launching Mosaic Connect, a platform that utilizes AI to match advertisers to community outlets. (amNewYork)
WEDDING VOWS: Evan Roth Smith, founding partner at Slingshot Strategies, and Hilary Jane Reid, a senior editor at New York Magazine's The Strategist, got married Saturday at Wentworth by the Sea in New Castle, New Hampshire by Rabbi Alex Matthews. The bride and groom would like to extend their apologies to the City of Portsmouth for any after-hours malfeasance by their wedding guests. (PIC)
— Alex deGrasse, a political strategist and longtime senior adviser to Rep. Elise Stefanik (R-N.Y.), and Katherine Doyle, a White House reporter for NBC News, were wed June 28 on Martha's Vineyard. (New York Times)
HAPPY BIRTHDAY: Commerce Secretary Howard Lutnick … Julie Wood … Adam Lisberg … Newsday's Lisa Colangelo … Kenan Kurt … James Capalino … Marisa Meltzer … Matt Bishop … Jennifer Walden Weprin … POLITICO's Rosie Perper … ABC's Devin Dwyer … Daniel Strauss … Air Mail's Graydon Carter … WSJ's Nicole Friedman … (WAS SUNDAY): Tony Kornheiser ... Katie Roiphe … WSJ's Josh Dawsey … NYT's Devlin Barrett … Punchbowl's Max Cohen … Joe Lockhart … Nick Newburger …
… (WAS SATURDAY): CNN's Edward-Isaac Dovere and Eden Getachew … Telos' Ryan Lizza … former FCC Chair Jessica Rosenworcel … Jim Poniewozik ... Alex Levy … Gregorio Gomez … Alexandra Betesh … Ella Riley-Adams … Josh King … Basel Hamdan … Bank of America's Adam Elias … Bloomberg's Kayla Sharpe … Fox News' Bryan Llenas … CBS' Mary Walsh … (WAS FRIDAY): Daniel L. Doctoroff ... Alyssa Katz … Zeesy Schnur ... Adina Wagman
Missed Friday's New York Playbook PM? We forgive you. Read it here.