Khurram Dara, a former policy counsel at Coinbase, is considering running for New York State Attorney General in 2026, potentially challenging current AG Letitia James. Dara's potential candidacy is fueled by concerns over what he views as "lawfare" against the crypto industry.

Dara has not yet made a final decision about running for the office. However, he has hinted that digital assets could play a significant role in his campaign should he choose to run. Dara, a Columbia Law School graduate, has already voiced his support for Tornado Cash co-founder Roman Storm, who was found guilty in New York's federal court in August 2025. He has also targeted figures like Massachusetts Senator Elizabeth Warren, who has frequently linked crypto with illegal activities.

Dara's platform would focus on ending lawfare across the board, including within the crypto industry. He believes that some state Attorneys General are attempting to fill a perceived gap in federal policy by acting as national policymakers or regulators, particularly as the federal regulatory environment has shifted. Dara's comments come at a time when the role of state Attorneys General in regulating the crypto space is under increasing scrutiny.

Letitia James, the current New York Attorney General, has been criticized by some who claim she is engaging in "lawfare" against the crypto industry. James, who assumed office in 2019, has taken several legal actions against crypto entities on behalf of affected New Yorkers, including Genesis, former Celsius CEO Alex Mashinsky, trading company NovaTech, and KuCoin. In December 2023, James secured more than $22 million from KuCoin for operating illegally, requiring the company to refund over 150,000 New York investors and banning them from trading securities and commodities in the state. She has also sued cryptocurrency companies Gemini, Genesis, and DCG for defrauding investors.

James has defended her actions by stating the need to protect New Yorkers from the dangers of unregulated cryptocurrency platforms. In June 2024, referring to allegations against NovaTech, she stated that her office would use all available tools to protect New Yorkers. Her office has recovered over $500 million from predatory cryptocurrency platforms.

New York is a significant commerce hub and home to the headquarters of various crypto companies, including Gemini, Galaxy Digital, and Chainalysis. This makes the AG position important for how the office handles digital assets rules and enforcement. The debate over regulation by enforcement in the cryptocurrency industry continues, highlighting the need for comprehensive and consistent regulation. Google Play's updated policy, effective October 29, 2025, will require crypto wallet apps to meet specific licensing rules in certain countries.

Dara's potential challenge to James signals a growing pushback against the current regulatory approach towards crypto in New York. His focus on "ending lawfare" resonates with some in the industry who feel targeted by overly aggressive enforcement actions. The outcome of the 2026 election could significantly impact the future of crypto regulation and enforcement in New York.