Former Coinbase Lawyer Challenges NY AG Over “Crypto Lawfare” – Can He Win?

Khurram Dara, a former policy lawyer at Coinbase and one of the crypto industry’s more outspoken regulatory voices, has entered the 2026 race for New York Attorney General, setting up what could become one of the most consequential political battles for digital assets in the United States.

Dara, 36, formally launched his campaign on Thursday, announcing he will seek the Republican nomination to unseat Democratic incumbent Letitia James.

His message centers on ending what he calls “lawfare,” the use of legal actions as political weapons, and reversing years of aggressive crypto enforcement under James’s leadership.

Ex-Coinbase Lawyer Says James’ Crypto Crackdowns Are Pushing Businesses Out of New York

Dara has been showing his political ambitions since August, often criticizing James’ approach as harmful to innovation and the state’s business climate.

He argues that New York’s regulatory environment has driven companies, investment, and jobs elsewhere, while contributing to rising costs that residents are struggling to manage.

“I’ve seen the cost of lawfare firsthand,” he said during a recent interview.

“It drives up the cost of doing business, erodes trust in government, and makes New York less affordable at a time when people are already stretched.”

The former Coinbase lawyer brings a long résumé from inside the crypto regulatory world. Until July, he served as the regulatory and policy principal at Bain Capital Crypto, the digital assets arm of the global investment firm.

He previously held positions at Fluidity and AirSwap before joining Coinbase in 2022, just as the exchange faced an SEC investigation that would help define the Biden-era crackdown on crypto.

He often credits that period with shaping his views on what he sees as unchecked regulatory overreach.

Letitia James, who has held office since 2019, has built a national profile through high-profile cases involving Donald Trump, the NRA, and Andrew Cuomo.

But she has also made crypto enforcement a central part of her agenda. Her office has brought actions against Gemini, Tether, Digital Currency Group, Genesis, KuCoin, NovaTech, and Galaxy Digital.

One of her biggest cases, the 2023 lawsuit against Gemini, Genesis, and DCG, resulted in the return of about $50 million to Gemini Earn users and a broader settlement that effectively shut Genesis’ lending operations in New York.

Her critics argue that she has stretched the boundaries of the Martin Act, a century-old law that grants the state broad authority to investigate financial misconduct.

Source: Journal of Business & Technology Law

NY’s 2026 Ballot Gains Another Crypto-Aligned Candidate as Dara Steps In

Dara’s platform calls for limiting how the Act is used and ending contingency-fee deals with private law firms, which allow outside attorneys to take a share of recovered funds.

He argues that these arrangements can encourage overly aggressive litigation and turn major enforcement decisions into a form of political theater.

His campaign also touches broader statewide concerns, echoing themes from recent local races, including those raised by Mayor-elect Zohran Mamdani, who won on a message centered on affordability.

Dara says ending regulatory excess and streamlining oversight would help lower costs for businesses and ultimately consumers.

Political forces around the race are beginning to shift. Some New York business leaders publicly welcomed Dara’s announcement, pointing to heightened uncertainty after the city’s recent mayoral election.

“It is encouraging to see a candidate with a pro-business, pro-innovation approach who could help restore confidence in our great city,” said Keith Grossman, president of MoonPay.

James is expected to seek a third term despite facing new political headwinds, including federal charges last month alleging mortgage fraud connected to a property in Virginia, charges she has pleaded not guilty to and described as politically motivated.

The state’s 2026 political field is also beginning to show more crypto-aligned candidates.

John Deaton, the attorney known for representing XRP holders in the SEC’s case against Ripple, recently announced he will again run as a Republican, this time challenging Senator Ed Markey in Massachusetts after losing his 2024 bid against Elizabeth Warren.

Crypto’s growing political footprint suggests the issue will be central in several 2026 races, but nowhere more so than New York, home to Wall Street, a major share of U.S. crypto companies, and the country’s toughest digital-asset rules.

Under state nominating laws, Dara will need either 25% of the vote at the GOP convention in February or enough petition signatures to enter the primary.

His only declared Republican opponent so far is Michael Henry, the party’s 2022 nominee.