NYC is more centrally located in a global point of view, travel wise I guess.   I dont think Bitcoin is a darling of anywhere, its resilience comes from being useful globally not tied to the politics and governmental department checklists of any place no matter how important they value themselves.
I hope it always stays that independent and reliable for global citizens who just want to be free and recognise capitalism not central banking with all its failures.

They might think all this red tape and paperwork increases safety, perhaps for them it does but it also chains the fates of those crypto enterprises to a sinking ship.   Any good setup should be portable and able to operate in every jurisdiction.  If NYC wants to setup these fences and hurdles and thinks its useful they'll have to justify it, I hope they dont intend to try and capture market participants within its boundaries.    Growth globally will be higher then NYC by itself can raise I think