Mamdani's Victory Sparks Crypto Sector Resistance, Divides Democratic Party

Zohran Mamdani has achieved a landmark win in New York City's mayoral race, becoming the first Muslim candidate to claim the office and strengthening the city's progressive movement. The 34-year-old democratic socialist prevailed over former Governor Andrew Cuomo and Republican Curtis Sliwa, with unofficial tallies indicating Mamdani secured just above half of the total votes. This result was widely expected by crypto prediction platforms, where 92% of Polymarket users had backed his victory before the November 4 election, including a $1 million wager that reflected overwhelming confidence, according to

.

Mamdani’s campaign, which centered on addressing living costs and implementing progressive tax policies, has sparked both approval and apprehension. His plans call for raising the corporate tax rate to 11.5% and introducing a 2% levy on individuals earning over $1 million per year, which his

project could bring in $9 billion annually. These initiatives are consistent with his support for Assembly Bill A7389C, which aimed to limit proof-of-work crypto mining due to environmental risks, as reported by Decrypt. Still, Mamdani maintains a cautious approach toward crypto, prioritizing consumer safeguards over strict regulation. “When crypto firms collapse, it’s not the wealthy who bear the brunt, but rather small investors, often from low-income and minority backgrounds,” he remarked in 2023, voicing support for New York Attorney General Letitia James’s consumer protection legislation, according to .

The crypto sector has responded warily to Mamdani’s triumph, despite his absence of explicitly anti-crypto measures. Notable industry voices such as Gemini co-founder Tyler Winklevoss and crypto attorney David Sacks have argued that his progressive agenda could hinder innovation and economic growth, according to TradingView. Meanwhile, financial supporters like hedge fund manager Bill Ackman contributed over $1.25 million to PACs opposing Mamdani, concerned that his tax proposals might discourage business investment, as noted by industry sources. Nevertheless, legal analysts highlight that the mayor’s authority over crypto regulation is limited, with most regulatory power held at the state and federal levels.

Mamdani’s success also has ramifications for the national Democratic Party. His primary win in June was celebrated as a milestone for grassroots progressive activism, earning endorsements from leaders such as Barack Obama and Kamala Harris, according to

. However, his democratic socialist agenda has unsettled some moderate Democrats, who fear it could distance centrist voters ahead of the 2026 midterm elections, as reported by . Obama’s recent congratulatory call to Mamdani, highlighting “a new kind of politics,” points to the candidate’s role as a potential blueprint for energizing the party’s appeal among younger and more diverse voters.

Surveys consistently placed Mamdani well ahead in the general election, with prediction sites like

giving him a 95% likelihood of winning. Despite Cuomo’s aggressive tactics, including AI-generated ads attempting to link Sliwa to Mamdani, the former governor was unable to narrow the margin, according to . Mamdani’s alliance—anchored in diverse, working-class neighborhoods—has remained robust, signaling broader changes in New York’s political scene, as noted by Decrypt.

With the city preparing for his inauguration on January 1, 2026, attention turns to his capacity to negotiate tax and crypto reforms at the state level. Although his progressive platform faces significant obstacles, Mamdani’s election marks a turning point for both New York’s political direction and the Democratic Party’s national strategy.