New Jersey’s Bureau of Securities has rescinded its 2023 cease-and-desist order against Coinbase’s staking service, along with the $5 million penalty imposed in the case. The withdrawal ends the restriction on new staking for Coinbase customers in the state, but does not resolve the underlying legal question.
The bureau’s notice, dated October 30 and signed by Acting Bureau Chief Keith A. Alt, says the action is without prejudice and makes no ruling on the merits. Coinbase told the Securities and Exchange Commission that the regulator had informed it of the planned withdrawal on October 29.
Coinbase CEO Brian Armstrong said New Jersey users would regain access to staking “very soon.” However, the exchange’s eligibility page still listed the state as ineligible for staking new principal, and no reopening date had been announced.
The order originated in June 2023, when New Jersey joined securities regulators in nine other states in challenging Coinbase’s staking program as an unregistered securities offering under state law. Under agreements reached with New Jersey and several other states, customers could not stake new funds while the cases were pending. Customers who had already staked funds continued earning rewards but could not add principal or compound those rewards.
The state actions proceeded alongside the Securities and Exchange Commission’s 2023 lawsuit against Coinbase, which also included claims related to staking. The SEC dismissed its case in February 2025. Several state regulators later dismissed, vacated or withdrew their actions. New Jersey is the sixth of the original ten states to step back.
The withdrawal does not prevent the bureau from bringing a new case, and it does not establish whether Coinbase’s staking program is a security. Coinbase’s SEC filing describes the state matters as preliminary and says an adverse outcome could materially affect its business.
Coinbase has said that state restrictions put it at a disadvantage. The company previously estimated that customers in four restricted states had missed out on more than $130 million in rewards as of October 2025. California, Maryland and Wisconsin continue to bar new Coinbase staking while their cases proceed; Washington allows staking but is pursuing a $4 million fine. Coinbase estimates California residents have forgone more than $89 million in rewards since 2023.
Sources: Bitcoin Magazine.