A Campaign Against “Crypto Lawfare”

Khurram Dara, a former policy lawyer at Coinbase, has officially entered the 2026 race for New York Attorney General. He plans to seek the Republican nomination to unseat the incumbent Democrat, Letitia James, setting the stage for a significant political battle over the future of digital assets in the United States.

Dara, who launched his campaign in August, argues that James’s aggressive enforcement actions against the crypto industry are pushing businesses, investments, and jobs out of New York. He contends that this regulatory approach, which he describes as “lawfare,” drives up the cost of doing business and harms the state’s affordability at a time when residents are already struggling.

With a background that includes roles at Bain Capital Crypto and AirSwap, Dara’s views were heavily shaped during his time at Coinbase, particularly as the exchange faced a major investigation from the Securities and Exchange Commission (SEC). He cites this period as a key motivator for his stance against what he sees as unchecked regulatory overreach.

James’s Enforcement Record Under Scrutiny

Letitia James, in office since 2019, has made crypto enforcement a cornerstone of her agenda. Her office has pursued legal action against numerous prominent firms, including Gemini, Tether, Digital Currency Group (DCG), Genesis, and KuCoin. A 2023 lawsuit against Gemini, Genesis, and DCG led to the return of approximately $50 million to users of the Gemini Earn program and effectively ended Genesis’s lending operations in the state.

Critics claim that James has excessively broadened the scope of the Martin Act, a state law from the early 20th century that gives her office wide-ranging authority to investigate financial misconduct. Dara’s platform specifically calls for limiting the use of this act and ending contingency-fee agreements with private law firms, which he believes encourages overly aggressive litigation.

Crypto’s Growing Influence in Politics

Dara’s campaign echoes broader statewide concerns about affordability and aims to lower costs for businesses and consumers by streamlining government oversight. His pro-innovation message has already gained support from some business leaders, including MoonPay president Keith Grossman, who said it was “encouraging to see a candidate who could help restore confidence in our great city.”

The race highlights a growing trend of crypto-aligned figures entering politics. John Deaton, the attorney who represented XRP holders in the SEC’s case against Ripple, is running for a U.S. Senate seat in Massachusetts. This increasing political footprint suggests digital asset policy will be a central issue in the 2026 elections, especially in New York, a global financial hub with some of the nation’s strictest crypto regulations.

To secure a spot on the primary ballot, Dara must either win 25% of the vote at the Republican convention or gather enough petition signatures. His only declared opponent for the nomination so far is Michael Henry, the party’s 2022 nominee.