Crypto Lawyer Khurram Dara Launches Bid for New York Attorney General

Crypto is once again stepping into U.S. politics — this time in New York’s 2026 Attorney General race. Khurram Dara, a 36-year-old crypto lawyer and New York native, has formally announced his campaign to challenge incumbent Letitia James, positioning himself as the candidate who will dismantle regulatory overreach and revive the state’s struggling business climate.

Speaking to Crypto In America, Dara said his mission is to stop the AG’s office from being used as a political weapon and to make New York a place where innovation — not bureaucracy — leads.

Dara Promises to Curb the Use of the Martin Act

A central part of Dara’s platform is reforming the AG office’s reliance on the Martin Act, a nearly century-old law that grants sweeping investigative and prosecutorial powers with minimal procedural limits. Critics have long argued the statute has been used selectively and politically.

Dara says limiting such powers is essential for restoring fairness and preventing prosecutions that can cripple businesses before they ever reach court.

Targeting Outside Law Firms and the BitLicense Regime

Dara also wants to end contingency-fee arrangements that allow private law firms to take a percentage of AG-led settlements — a practice he says encourages politically motivated or overly aggressive cases.

He is equally critical of New York’s BitLicense framework, calling it an unnecessary burden that has driven startups and innovation out of the state. Rolling back these “unlawful regulations,” he argues, would immediately reduce costs for businesses and consumers.

A Direct Attack on Letitia James’ Record

Dara accused James of putting political ambition above the needs of residents. He argued that her aggressive enforcement actions have driven companies and investment out of New York while contributing to the ongoing affordability crisis.

“I’ve seen the cost of lawfare firsthand,” Dara said. “It erodes trust in government, it drives businesses away, and it raises prices for New Yorkers who are already struggling.”

Support Emerges From Business Leaders Worried About New York’s Future

Some New York business leaders have already responded positively to Dara’s campaign. Keith Grossman, President of MoonPay, said Dara’s pro-business, pro-innovation platform is a welcome counterweight amid growing uncertainty following the recent mayoral election of Democratic Socialist Zohran Mamdani.

Dara’s Crypto Background Shapes His Vision

Raised outside Buffalo, Dara most recently served as Head of Regulatory and Policy at Bain Capital Crypto. His previous roles at Fluidity and Coinbase exposed him to the SEC’s 2022 investigation into the exchange, a defining moment in the broader Biden-era clampdown on the industry. He says these experiences deeply influenced his decision to run.

James Faces Scandals, a Heavy Record, and a Potentially Tough Race

Letitia James, 67, is expected to pursue a third term. She has built a national reputation through high-profile actions against Donald Trump, the NRA, and former Governor Andrew Cuomo. Crypto enforcement has also been a hallmark of her tenure, with aggressive moves against Gemini, Tether, Digital Currency Group, and Galaxy Digital.

Her office’s lawsuit against Gemini, Genesis, and DCG forced Gemini to return roughly $50 million to Earn users and accept a ban on offering crypto lending products in the state. She has also advocated for tighter federal oversight, arguing the GENIUS Act’s stablecoin rules are too lax and that issuance should be limited to U.S. banks.

James now enters the 2026 race under the cloud of a federal indictment for alleged mortgage fraud. She has pleaded not guilty, calling the charges politically motivated.

Dara Must Secure a Ballot Spot Before the Primary

Under New York GOP rules, Dara will need either 25% of the vote at the party’s February 2026 convention or enough petition signatures to qualify for the primary ballot. His only declared Republican opponent so far is Michael Henry, the party’s 2022 nominee.