Former Coinbase Lawyer Challenges NY AG Over “Crypto Lawfare” – Can He Win?
Khurram Dara, a former coverage lawyer at Coinbase and one of many crypto trade’s extra outspoken regulatory voices, has entered the 2026 race for New York Attorney General, establishing what might change into one of the consequential political battles for digital property within the United States.
Dara, 36, formally launched his marketing campaign on Thursday, asserting he’ll search the Republican nomination to unseat Democratic incumbent Letitia James.
His message facilities on ending what he calls “lawfare,” using authorized actions as political weapons, and reversing years of aggressive crypto enforcement underneath James’s management.
Ex-Coinbase Lawyer Says James’ Crypto Crackdowns Are Pushing Businesses Out of New York
Dara has been displaying his political ambitions since August, usually criticizing James’ strategy as dangerous to innovation and the state’s enterprise local weather.
He argues that New York’s regulatory setting has pushed firms, funding, and jobs elsewhere, whereas contributing to rising prices that residents are struggling to handle.
“I’ve seen the price of lawfare firsthand,” he mentioned throughout a current interview.
“It drives up the price of doing enterprise, erodes belief in authorities, and makes New York much less inexpensive at a time when persons are already stretched.”
The former Coinbase lawyer brings a protracted résumé from contained in the crypto regulatory world. Until July, he served because the regulatory and coverage principal at Bain Capital Crypto, the digital property arm of the worldwide funding agency.
He beforehand held positions at Fluidity and AirSwap earlier than becoming a member of Coinbase in 2022, simply because the alternate confronted an SEC investigation that may assist outline the Biden-era crackdown on crypto.
He usually credit that interval with shaping his views on what he sees as unchecked regulatory overreach.
Letitia James, who has held workplace since 2019, has constructed a nationwide profile by way of high-profile instances involving Donald Trump, the NRA, and Andrew Cuomo.
But she has additionally made crypto enforcement a central a part of her agenda. Her workplace has introduced actions in opposition to Gemini, Tether, Digital Currency Group, Genesis, KuCoin, NovaTech, and Galaxy Digital.
One of her largest instances, the 2023 lawsuit against Gemini, Genesis, and DCG, resulted within the return of about $50 million to Gemini Earn customers and a broader settlement that successfully shut Genesis’ lending operations in New York.
Her critics argue that she has stretched the boundaries of the Martin Act, a century-old regulation that grants the state broad authority to research monetary misconduct.
NY’s 2026 Ballot Gains Another Crypto-Aligned Candidate as Dara Steps In
Dara’s platform requires limiting how the Act is used and ending contingency-fee offers with non-public regulation corporations, which permit outdoors attorneys to take a share of recovered funds.
He argues that these preparations can encourage overly aggressive litigation and switch main enforcement choices right into a type of political theater.
His marketing campaign additionally touches broader statewide issues, echoing themes from current native races, together with these raised by Mayor-elect Zohran Mamdani, who won on a message centered on affordability.
@ZohranKMamdani has been elected as New York City’s subsequent mayor, marking a notable win for crypto prediction markets.#Mamdani #Cryptohttps://t.co/UGbQ5fFNBQ
— Cryptonews.com (@cryptonews) November 5, 2025
Dara says ending regulatory extra and streamlining oversight would assist decrease prices for companies and in the end customers.
Political forces across the race are starting to shift. Some New York enterprise leaders publicly welcomed Dara’s announcement, pointing to heightened uncertainty after town’s current mayoral election.
“It is encouraging to see a candidate with a pro-business, pro-innovation strategy who might assist restore confidence in our nice metropolis,” mentioned Keith Grossman, president of MoonPay.
James is anticipated to hunt a 3rd time period regardless of going through new political headwinds, together with federal prices final month alleging mortgage fraud related to a property in Virginia, prices she has pleaded not responsible to and described as politically motivated.
The state’s 2026 political area can also be starting to indicate extra crypto-aligned candidates.
John Deaton, the lawyer recognized for representing XRP holders within the SEC’s case in opposition to Ripple, not too long ago announced he will again run as a Republican, this time difficult Senator Ed Markey in Massachusetts after dropping his 2024 bid in opposition to Elizabeth Warren.
Crypto lawyer John Deaton is working for the U.S. Senate seat in Massachusetts once more, however hasn’t talked about any pro-crypto insurance policies in his marketing campaign.#JohnDeaton #CryptoLawyer #MassachusettsSenateRacehttps://t.co/vNoEGNTp6q
— Cryptonews.com (@cryptonews) November 12, 2025
Crypto’s rising political footprint suggests the problem will likely be central in a number of 2026 races, however nowhere extra so than New York, residence to Wall Street, a significant share of U.S. crypto firms, and the nation’s hardest digital-asset guidelines.
Under state nominating legal guidelines, Dara will want both 25% of the vote on the GOP conference in February or sufficient petition signatures to enter the first.
His solely declared Republican opponent up to now is Michael Henry, the celebration’s 2022 nominee.
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