EXCLUSIVE: Crypto Lawyer Khurram Dara Announces Run for New York Attorney General
Dara will aim to challenge incumbent Letitia James, pledging to end regulatory overreach and boost New York’s business climate
EXCLUSIVE: After dominating the political conversation in 2024, crypto could now play a central role in New York’s 2026 Attorney General race, where a 36-year-old crypto lawyer is set to challenge the state’s anti-crypto incumbent, Letitia James.
Khurram Dara, a New York State native, officially announced his candidacy on Thursday. He says his campaign will end the use of the AG’s office as a political weapon, curb regulatory overreach, and restore New York as a place where innovation can thrive.
“Lawfare and regulatory overreach are hurting New York’s business climate and making the affordability crisis worse,” Dara told Crypto In America in an exclusive interview. “My goal is to make New York business-and innovation-friendly, not just for digital assets and frontier tech, but for small businesses too.”
Dara’s platform includes curbing the AG office’s use of the Martin Act, a nearly 100-year-old New York law that gives the Attorney General broad power to investigate and prosecute financial wrongdoing with very few procedural limits. Critics argue it has often been used as a political weapon rather than a neutral enforcement tool.
He also wants to end contingency-fee arrangements with private law firms, which allow outside lawyers to take a cut of any money recovered in lawsuits brought by the AG’s office. Detractors say this system can create incentives for politically motivated or overly aggressive cases.
Dara also plans to fight what he calls “unlawful regulations” that impose unnecessary burdens on businesses, including the so-called BitLicense, New York’s strict regulatory framework for crypto companies that requires extensive licensing, reporting, and compliance measures and which many industry leaders say has driven startups and innovation out of the state. Dara says these changes would immediately improve the business climate and help lower costs for companies and consumers.
He blasted James, a 20-year veteran of New York politics, for putting “her own political interests ahead of New Yorkers,” arguing that her approach has driven businesses, innovation, and investment out of the state and contributed to the skyrocketing cost of living that residents are facing today.
“I’ve seen the cost of lawfare firsthand,” Dara said. “It erodes trust in government and drives up the cost of doing business, leading to higher prices at a time when New Yorkers are facing a crippling affordability crisis.”
A press rep for James did not respond to a request for comment.
Dara’s platform is being welcomed by some New York business leaders concerned about the city’s direction following the election of Democratic Socialist Zohran Mamdani earlier this month.
“With all the uncertainty following the mayoral election, it is encouraging to see a candidate with a pro-business, pro-innovation approach who could help restore confidence in our great city,” said Keith Grossman, President of MoonPay, a crypto payments firm based in New York City.
Dara, who grew up outside Buffalo, most recently led Regulatory and Policy at Bain Capital Crypto, the cryptocurrency and digital assets division of the global investment firm. Before that, he held roles at blockchain firm Fluidity and Coinbase, where he witnessed the SEC’s 2022 investigation into the exchange, part of the broader Biden-era crackdown on crypto. He says that experience has helped shape his campaign.
James, 67, is expected to seek re-election for a third term. In addition to building a national profile by prosecuting President Donald Trump, the NRA, and former Governor-turned-mayoral candidate Andrew Cuomo, she has made crypto enforcement a signature focus of her tenure, taking action against Gemini, Tether, Digital Currency Group, and Galaxy Digital. Her office’s 2023 lawsuit against Gemini, Genesis, and DCG led to Gemini returning roughly $50 million to Earn users and agreeing to a ban on offering crypto lending products in New York, following a broader $2 billion Genesis settlement.
James has also advocated for aggressive federal oversight of digital assets, warning that the GENIUS Act, the recently passed federal framework for stablecoins, lacks adequate safeguards. She has argued that stablecoin issuance should be limited to regulated U.S. banks, saying digital assets could pose systemic risks if left unchecked.
Last month, James was indicted on federal charges alleging mortgage fraud related to a property in Virginia. She has pleaded not guilty, and her campaign has described the case as politically motivated.
Under New York’s nominating rules, Dara will need either 25% of the vote at the GOP’s 2026 convention in February or enough petition signatures to secure a spot on the primary ballot. The only other declared Republican candidate so far is Michael Henry, the party’s 2022 nominee.