New Jersey Withdraws Its 2023 Coinbase Staking Order
New Jersey's Bureau of Securities has rescinded the cease-and-desist order that restricted Coinbase from offering its staking service to state residents. The decision, dated October 30, 2026, also withdraws a $5 million civil penalty imposed on the exchange in 2023.
The notice was signed by Acting Bureau Chief Keith A. Alt. It reverses the order issued on June 6, 2023, which had directed Coinbase to stop offering securities, including what regulators described as Coinbase Staking Securities, in New Jersey unless they were registered, covered or exempt under state securities law.
However, the rescission was made without prejudice and without an adjudication on the merits. This means the regulator did not issue a ruling resolving the underlying legal questions, and it retains the ability to take further enforcement action if warranted. The full details appear in the New Jersey Bureau of Securities' rescission notice.
Coinbase Could Restore Staking for New Jersey Customers
Coinbase disclosed the regulator's decision in its third-quarter filing with the US Securities and Exchange Commission. The company said New Jersey's regulator informed it on October 29 that it intended to rescind the order. CEO Brian Armstrong also said New Jersey customers would regain access to staking “very soon.”
The withdrawal removes the state-level order that had prevented New Jersey residents from staking new funds through Coinbase for more than three years. The precise timing and availability of restored services will depend on Coinbase's implementation.
Staking allows cryptocurrency holders to commit eligible assets to a blockchain's proof-of-stake system. Those assets help support network operations, including transaction validation, and participants may receive rewards in return. When customers use an exchange such as Coinbase, the platform can handle the staking process and charge a fee for its service.
Other State-Level Staking Cases Remain Relevant
New Jersey's decision does not resolve the wider regulatory dispute over Coinbase's staking products. Coinbase's SEC filing describes actions brought by state securities regulators in 2023, including proceedings involving California, Maryland, Washington and Wisconsin.
The original regulatory effort involved a group of 10 states: Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin. Coinbase's filing also records that several states withdrew or dismissed their actions in March and April 2025, including Alabama, Kentucky, Illinois, South Carolina and Vermont.
California, Maryland, Wisconsin and Washington remain important parts of the regulatory picture described in the supplied material. The status and terms of each state's proceedings are not identical. The California Department of Financial Protection and Innovation's 2023 announcement provides background on the multi-state action.
Staking Restrictions Have Had a Financial Impact on Customers
The restrictions have also affected customers who could not add new funds to Coinbase staking services while the state actions were pending. Coinbase estimates that California users missed out on more than $89 million in potential staking rewards since 2023. For New Jersey customers, the company's estimate exceeds $15 million.
These figures are Coinbase's estimates of foregone rewards, not confirmed losses or guaranteed returns. Actual staking rewards vary depending on the assets involved, network conditions, participation levels and applicable fees.
The New Jersey reversal therefore removes one significant restriction, but it does not mean every affected customer will automatically receive compensation or that staking access has already been restored for all users.
Coinbase Staking Decision Comes Ahead of US Midterm Elections
The rescission arrives just ahead of the November 3 US midterm elections, which are taking place amid continuing debate over digital-asset regulation. The election could influence the political environment surrounding crypto legislation and oversight, although the outcome and its effect on future policy remain uncertain.
Several political figures mentioned in the wider debate have different records on crypto legislation. New Jersey Governor Mikie Sherrill supported the CLARITY and GENIUS bills while serving in the House of Representatives, while Senator Cory Booker participated in negotiations over digital-asset market-structure legislation but opposed advancing the CLARITY Act in September.
The crypto industry has also sought support across party lines. Fairshake and affiliated political action committees have backed candidates from both major parties in House races. These political developments form part of the broader regulatory backdrop, but they do not determine the outcome of Coinbase's remaining state-level cases.
New Jersey's action is a concrete change for Coinbase: the 2023 order and its $5 million penalty have been rescinded. The decision may allow the exchange to restore staking access for residents, while the regulator's ability to pursue future action and the status of proceedings in other states leave the wider legal questions open.
