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Coinbase says New Jersey plans to rescind three-year staking order
The regulator told the exchange on Oct. 29 it intends to withdraw its 2023 order and $5 million penalty, though four states still have staking cases pending.
Key takeaways
- Planned, not completed. Coinbase's filing describes an intended withdrawal of the order and penalty; the company has not announced a finished rescission.
- Four states remain. California, Maryland, Wisconsin and Washington are still pursuing staking-related actions against the exchange.
- No reopening date. Coinbase's eligibility guidance still lists New Jersey as restricted, though CEO Brian Armstrong said access would return soon.
What happened
Coinbase has disclosed that New Jersey's securities regulator intends to rescind the enforcement order that has prevented residents from staking new assets through the exchange since 2023. In its third-quarter filing, the company said the state's Bureau of Securities notified it on Oct. 29 of the plan to withdraw the summary penalty and cease-and-desist order. The disclosure sits within Coinbase's account of the state proceedings brought against its staking services.
Cointelegraph reported that the notice, dated Oct. 30 and signed by Acting Bureau Chief Keith A. Alt, withdraws both the order and a $5 million penalty without prejudice and without a ruling on the merits. That wording means the bureau is not barred from filing a fresh enforcement action against the exchange at a later date. Coinbase has not announced that the rescission is complete, and its published eligibility guidance still lists New Jersey among restricted jurisdictions.
Under the restrictions, New Jersey customers could not stake new principal, while balances already staked continued to earn rewards that could not be restaked or compounded. Customers were free to unstake at any time, but withdrawn principal and rewards already earned could not be returned to the service. Coinbase CEO Brian Armstrong said residents would regain staking access "very soon," according to Cointelegraph. No confirmed reopening date has been given.
Why it matters
The move would end a restriction in place since June 2023 and restore a service line in one of the states that joined the multi-state action against Coinbase. It does not resolve the wider dispute: California, Maryland, Wisconsin and Washington are still pursuing cases over the exchange's staking products, and Coinbase groups New Jersey with California, Maryland and Wisconsin in its current restrictions table. Washington residents can still stake, but its regulator is seeking a $4 million fine. Coinbase has estimated that California users missed more than $89 million in staking rewards since 2023, against more than $15 million in New Jersey.
What the data shows
The penalty at issue was $5 million. California's case, which led the ten-state task force behind the 2023 actions, covered more than 600,000 accounts held by Californians, according to Cointelegraph. Coinbase's estimates of missed rewards are its own and do not represent compensation promised to customers: in April 2025 it put the figure at more than $90 million across California, New Jersey, Maryland and Wisconsin, and in October 2025 at more than $130 million across the same four states. Separately, the number of members of Congress rated A by Stand With Crypto has risen to 332 from 96 at its 2023 launch, Reuters reported.
Background
The New Jersey Bureau of Securities issued its order against Coinbase Global and Coinbase Inc. on June 6, 2023, alleging the companies offered staking products that required registration under state securities law. Coinbase has consistently disputed that its staking service amounts to a security. In July 2023 the company said California, New Jersey, South Carolina and Wisconsin had required it to stop retail customers staking additional assets while proceedings continued, and it recorded a similar agreement with Maryland that October. Alabama, Kentucky, Illinois, South Carolina and Vermont withdrew their actions in March and April 2025. New York opened staking access in October 2025.
What to watch
Whether the rescission is finalized and when New Jersey customers can stake again are the immediate questions; Coinbase's guidance has not been updated. The remaining state cases, particularly California's, will shape how quickly staking restrictions disappear elsewhere. The timing also overlaps with politics: the news landed ahead of the Nov. 3 midterm elections, with prediction markets favoring Democrats for Senate control. A Democratic majority would put Sen. Elizabeth Warren, a prominent crypto critic, in line to chair the Senate Banking Committee, while Sen. Cynthia Lummis is set to retire in January 2027. New Jersey's reversal came under Democratic Gov. Mikie Sherrill, who voted for the CLARITY and GENIUS bills while in the House.
Questions readers ask
Can New Jersey residents stake new funds on Coinbase now?
Coinbase's eligibility guidance still lists New Jersey among restricted jurisdictions. The company has disclosed only a planned withdrawal of the order, with no confirmed date for reopening staking to new principal.
What did the 2023 order allege?
The New Jersey Bureau of Securities alleged that Coinbase offered staking products requiring registration under state securities law. Coinbase has disputed the claim that its staking services are securities.
Could New Jersey bring a new case later?
Yes. The order was withdrawn without prejudice and without a ruling on the merits, which leaves the bureau free to pursue fresh enforcement action against the exchange.
