Khurram Dara Eyes 2026 NY AG Bid to Challenge Lawfare Approach

Khurram Dara, a former policy counsel at Coinbase and Columbia Law School graduate, has hinted at a potential 2026 campaign for New York State Attorney General, positioning himself as a direct challenge to current officeholder Letitia James [2]. Dara’s stated focus would center on digital assets and regulatory reform, with a mission to end what he calls “lawfare”—a strategy he claims unfairly targets the crypto industry through aggressive legal action [1]. This move highlights a growing push among crypto advocates to contest regulatory policies they view as stifling innovation.

Letitia James, who has held the position since 2019, has faced scrutiny for her high-profile lawsuits targeting cryptocurrency firms and individuals, including Genesis, Alex Mashinsky, and KuCoin. While her office argues these actions are intended to protect New Yorkers, Dara and other critics claim they cross into federal regulatory territory and create legal uncertainty for the industry [1]. Dara has also publicly supported Roman Storm, a Tornado Cash co-founder recently convicted by a federal court, and has taken on high-profile critics of crypto, such as Senator Elizabeth Warren [2].

Dara’s potential candidacy aligns with a broader trend of crypto-aligned professionals seeking political office. His background includes experience as a New York State Senate intern, a clerk for the U.S. Attorney’s Office, and roles in congressional internships. If he runs, he would join a handful of Republicans with legal and crypto expertise challenging Democratic incumbents, echoing similar moves in races such as John Deaton’s 2024 Senate bid against Elizabeth Warren [2].

The political landscape for the 2026 race is already shaping up, with Republican Michael Henry having previously earned 45% of the vote against James in 2022. A December 2024 Siena College poll indicated James maintains a 40% favorability rating, though her controversial legal tactics continue to draw criticism [1]. The outcome of this race could significantly influence New York’s regulatory direction, particularly as the state remains a critical hub for finance and fintech.

Dara’s entry into the political arena reflects a deeper ideological shift in the crypto space: a push to redefine the role of regulators and advocate for policies that foster innovation rather than deter it. His campaign—if it materializes—could represent a pivotal moment in the ongoing legal and political battles shaping the future of cryptocurrency in the United States.

Sources:

[1] Crypto lawyer signals challenge to NY AG with lawfare message - ONUS (https://insights.goonus.io/en/insights/crypto-lawyer-signals-challenge-to-ny-ag-with-lawfare-message/)

[2] Crypto lawyer signals challenge to NY AG with 'lawfare' ... - Ground (https://ground.news/article/crypto-lawyer-signals-challenge-to-ny-ag-with-lawfare-message_e5d5ff)

[3] Crypto lawyer signals challenge to NY AG with 'lawfare ... - CoinStats (https://coinstats.app/news/9cfb863f5c9d6fe1a5632c02997571fa71a1750c01d4127ee66ded191c2737fb_-Crypto-lawyer-signals-challenge-to-NY-AG-with-lawfare-message-)