Ex-Coinbase Attorney Contests New York Attorney General Regarding “Crypto Lawfare” – Is Victory Possible?

Khurram Dara, a previous policy attorney at Coinbase and a prominent regulatory advocate within the crypto sector, has officially entered the race for New York Attorney General in 2026, potentially setting the stage for a significant political confrontation regarding digital assets in the United States.

Dara, 36, announced his campaign on Thursday, revealing his intention to pursue the Republican nomination to challenge Democratic incumbent Letitia James.

Lawfare isn’t just incorrect – it’s expensive.
I’m running for Attorney General to put an end to lawfare, uphold the law, and foster a more favorable business environment in New York to address the affordability crisis.
Join the effort. Contribute today. https://t.co/GhQIuwvIM3 pic.twitter.com/n8Fynf6esq

— Khurram Dara (@KhurramDara) November 20, 2025

His campaign focuses on terminating what he describes as “lawfare,” the utilization of legal actions as political tools, and reversing years of stringent crypto enforcement under James’s administration.

Former Coinbase Attorney Claims James’ Crypto Enforcement is Driving Businesses Away from New York

Dara has been expressing his political aspirations since August, frequently criticizing James’ methods as detrimental to innovation and the state’s business environment.

He contends that New York’s regulatory framework has compelled companies, investments, and jobs to relocate, while also exacerbating rising costs that residents are finding difficult to cope with.

“I’ve experienced the impact of lawfare firsthand,” he stated in a recent interview.

“It increases the cost of doing business, undermines trust in government, and renders New York less affordable at a time when individuals are already financially strained.”

New York requires an Attorney General who will enforce the law, not politicize it. That’s why I’m running.
Join the effort. Contribute today: https://t.co/GhQIuwvIM3 pic.twitter.com/TFCAQ7PCda

— Khurram Dara (@KhurramDara) November 21, 2025

The former Coinbase attorney possesses an extensive background in the crypto regulatory landscape. Until July, he was the regulatory and policy principal at Bain Capital Crypto, the digital assets division of the global investment firm.

He previously held roles at Fluidity and AirSwap before joining Coinbase in 2022, coinciding with the exchange’s SEC investigation that would help define the Biden administration’s crackdown on crypto.

He frequently attributes that period to shaping his perspective on what he perceives as unchecked regulatory overreach.

Letitia James, who has been in office since 2019, has gained national attention through high-profile cases involving Donald Trump, the NRA, and Andrew Cuomo.

However, she has also made crypto enforcement a key aspect of her agenda. Her office has initiated actions against Gemini, Tether, Digital Currency Group, Genesis, KuCoin, NovaTech, and Galaxy Digital.

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

Critics argue that she has stretched the limits of the Martin Act, a century-old law that grants the state extensive authority to investigate financial misconduct.

Source: Journal of Business & Technology Law

NY’s 2026 Ballot Welcomes Another Crypto-Aligned Candidate as Dara Enters

Dara’s platform advocates for restricting the application of the Act and abolishing contingency-fee agreements with private law firms, which permit outside attorneys to receive a portion of recovered funds.

He argues that these arrangements can promote excessively aggressive litigation and transform significant enforcement decisions into a form of political spectacle.

His campaign also addresses broader statewide issues, resonating with themes from recent local elections, including those highlighted by Mayor-elect Zohran Mamdani, who won on a platform focused on affordability.

@ZohranKMamdani has been elected as New York City’s next mayor, marking a notable win for crypto prediction markets.#Mamdani #Cryptohttps://t.co/UGbQ5fFNBQ

— Cryptonews.com (@cryptonews) November 5, 2025

Dara asserts that curtailing regulatory excess and streamlining oversight would contribute to lowering costs for businesses and, ultimately, consumers.

Political dynamics surrounding the race are beginning to evolve. Some New York business leaders have publicly welcomed Dara’s announcement, citing increased uncertainty following the city’s recent mayoral election.

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

James is anticipated to pursue a third term despite encountering new political challenges, including federal charges last month alleging mortgage fraud related to a property in Virginia, charges she has pleaded not guilty to and characterized as politically motivated.

The state’s 2026 political landscape is also starting to reveal more crypto-aligned candidates.

John Deaton, the attorney recognized for representing XRP holders in the SEC’s case against Ripple, recently declared his intention to run again as a Republican, this time contesting Senator Ed Markey in Massachusetts after losing his 2024 bid against Elizabeth Warren.

Crypto attorney John Deaton is running for the U.S. Senate seat in Massachusetts again, but hasn’t mentioned any pro-crypto policies in his campaign.#JohnDeaton #CryptoLawyer #MassachusettsSenateRacehttps://t.co/vNoEGNTp6q

— Cryptonews.com (@cryptonews) November 12, 2025

The expanding political presence of crypto indicates that the issue will be pivotal in several 2026 races, particularly in New York, which is home to Wall Street, a significant portion of U.S. crypto firms, and the nation’s strictest digital-asset regulations.

According to state nominating laws, Dara will need either 25% of the vote at the GOP convention in February or sufficient petition signatures to qualify for the primary.

His only declared Republican rival thus far is Michael Henry, the party’s nominee from 2022.

The post Former Coinbase Lawyer Challenges NY AG Over “Crypto Lawfare” – Can He Win? appeared first on Cryptonews.