Ex-Coinbase Lawyer Challenges NY AG James in 2026 Race

In a significant political development that pits crypto industry experience against regulatory enforcement, Khurram Dara—former lawyer at Coinbase and regulatory principal at Bain Capital Crypto—has officially entered the 2026 race for New York attorney general. His campaign announcement on Friday positions him as a direct challenger to incumbent Letitia James, who has become one of the cryptocurrency industry’s most prominent regulatory adversaries during her tenure. Dara’s entry into the race represents an early and deliberate challenge to what he characterizes as James’ overreach in regulating digital assets.

Dara brings extensive credentials from the very industry James has frequently targeted. His portfolio includes serving as regulatory and policy principal at Bain Capital Crypto until July, preceded by a stint as policy counsel at Coinbase between June 2022 and January 2023. Before these roles, he gained hands-on experience at blockchain and digital asset companies Fluidity and Airswap, giving him what he describes as ‘regulatory and policy experience, particularly in the crypto and fintech space’—experience he cites as core rationale for his political candidacy.

Central to Dara’s campaign is his repeated accusation that James’ actions amount to ‘lawfare’ against the crypto industry. ‘I have seen the cost of lawfare firsthand,’ Dara stated in his campaign announcement, framing the attorney general’s enforcement approach as politically motivated rather than consumer-focused. He argues that James’ office has taken on a role that goes far beyond consumer protection, reshaping New York’s business environment in ways that are ‘costly in more ways than one.’

Dara connects this regulatory approach directly to New York’s economic challenges, claiming that the shift ‘set the stage for Letitia James’ partisan lawfare’ and raised operating costs for companies ‘at a time when New Yorkers face a crippling affordability crisis.’ His position is rooted in his regulatory work, where he claims New York’s enforcement climate has pushed crypto companies, investment, and jobs out of the state. He frames this as part of a broader economic burden, saying lawfare raises the cost of doing business, reduces trust in government, and exacerbates the state’s affordability problems when residents are already financially stretched.

The race sets up a fundamental clash between two contrasting approaches to cryptocurrency regulation. James, who took office in 2019, has frequently drawn pushback from crypto firms for bringing actions on behalf of affected New Yorkers. Her office has kept at the center of the industry’s legal battles through cases involving Genesis, KuCoin, and NovaTech—enforcement actions that Dara characterizes as excessive and damaging to New York’s economic competitiveness.

Dara argues that ‘the evolution of state AGs into regulators and policymakers has been costly in more ways than one – and nowhere has that been more apparent than in New York.’ His campaign positions him as an alternative voice who understands both the regulatory framework and the practical realities of the crypto industry. The battle comes amid broader regulatory uncertainty for digital assets, with the SEC delaying decisions on products like the Grayscale Ether Futures Trust ETF and seeking substantial penalties in cases involving companies like Ripple.

The 2026 attorney general race now emerges as a critical test of whether New York voters prefer James’ enforcement-heavy approach or Dara’s industry-experienced perspective. With major crypto entities like BTC and ETH facing regulatory headwinds nationally, and international developments like the seizure of crypto mining servers in Borneo highlighting the global nature of digital asset regulation, New York’s choice in this race could signal broader shifts in how jurisdictions balance consumer protection with innovation-friendly policies.