New York AG Race: Coinbase Alum Dara Challenges Incumbent James Over Crypto Regulation

Khurram Dara, a 36-year-old attorney and former Coinbase regulatory lead, is considering a longshot bid for New York Attorney General. Dara, a Republican, aims to challenge incumbent Democrat Letitia James, who has been critical of the crypto industry. The New York race could test the industry's political clout as state-level regulators step up enforcement. Dara has support from some local Republican chapters, but faces an uphill battle in a heavily Democratic state.

A significant political race is brewing in New York, as 36-year-old attorney Khurram Dara, a former Coinbase regulatory lead, announces his longshot bid for the position of New York Attorney General. Dara, a Republican, aims to challenge incumbent Democrat Letitia James, who has been a vocal critic of the crypto industry. The race could test the industry's political clout as state-level regulators step up enforcement.

Dara, who has support from some local Republican chapters, faces an uphill battle in a heavily Democratic state. His platform focuses on challenging what he sees as overreach by the current administration in regulating the crypto sector. Dara argues that the industry needs a more balanced approach to regulation, one that fosters innovation while protecting consumers.

The race comes amid increasing scrutiny of the crypto industry by state regulators. In recent months, New York has proposed an excise tax on crypto and NFT transactions [3], reflecting a broader trend of state-level regulatory efforts. Assembly Bill 8966, introduced by Democratic Assemblymember Phil Steck, would add a 0.2% excise tax on digital asset transactions, including the sale or transfer of digital assets [4]. The bill, if passed, would take effect immediately and apply to all sales and transactions starting September 1.

Dara's challenge to James is particularly notable given her recent lawsuit against Zelle payments network operator Early Warning Services, alleging that it failed to shield its users from fraud. James seeks restitution and damages for impacted customers, as well as a court order mandating Zelle maintain anti-fraud measures [1]. Early Warning Services, owned and controlled by major US banks, has denied the allegations and called the lawsuit a "political stunt to generate press."

The New York Attorney General race is not just a local political story but one with significant implications for the crypto industry. As state regulators tighten their grip, the industry will closely monitor how the race unfolds and how the winning candidate approaches crypto regulation. Dara's challenge to James could lead to a more industry-friendly approach, while James' continued oversight could signal further regulatory intensity.

References:
[1] https://finance.yahoo.com/news/zelle-payments-network-operator-sued-141533261.html
[2] https://theoutpost.ai/news-story/north-korean-hackers-intensify-efforts-to-infiltrate-crypto-industry-19060/
[3] https://www.ainvest.com/news/york-proposes-excise-tax-crypto-nft-transactions-2508/
[4] https://cointelegraph.com/news/new-york-bill-would-tax-crypto-sales-transfers