New Jersey has withdrawn the 2023 order that barred Coinbase staking for its residents, along with the $5 million penalty attached to it, making it the sixth of ten states to back away from the coordinated case against the exchange. The four that remain include California, which led the original effort and still blocks new staking for one of Coinbase’s largest user bases.
The two-page notice from the New Jersey Bureau of Securities, dated October 30 and signed by Acting Bureau Chief Keith A. Alt, is short on reasoning. Its operative line reads: “The Coinbase Order is rescinded, without prejudice.” The bureau adds that it is acting without an adjudication on the merits and keeps the right to bring future enforcement under state securities law.
What “without prejudice” leaves open
The wording matters. New Jersey has not conceded that staking through Coinbase falls outside its securities laws, and it has not settled anything. It has simply withdrawn the June 6, 2023 summary penalty and cease-and-desist order, which had demanded the $5 million payment and told Coinbase to stop offering what the bureau called “Coinbase Staking Securities” in the state unless they were registered or exempt.
Coinbase knew this was coming before the public did. Its quarterly report for the period ended September 30, filed on October 29, says the New Jersey regulator told the company that same day that it intended to rescind the order. The filing also repeats that Coinbase disputes the claims of all the state regulators and intends to defend against them.
Brian Armstrong, Coinbase’s chief executive, welcomed the decision on Monday. “We keep fighting (and winning) these cases for our customers,” he wrote, adding that New Jersey users would “very soon” be able to stake again. No restart date has been given, so access is expected rather than restored.
Six of ten states have now stepped back
The filing gives the clearest scorecard of the 2023 action. In June of that year, regulators in Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin issued notices, show-cause orders or cease-and-desist letters over Coinbase’s staking service. California, New Jersey, South Carolina and Wisconsin then reached agreements under which their residents could no longer stake new funds while the cases ran, and Maryland followed in October 2023.
Alabama, Kentucky, Illinois, South Carolina and Vermont dismissed, vacated, rescinded or withdrew their actions in March and April 2025. New Jersey is the first to move since then, roughly 18 months later.
That leaves California, Maryland, Wisconsin and Washington. In the first three, residents still cannot stake new funds with Coinbase. Washington allows staking but is still seeking a $4 million fine, Cointelegraph reported. Coinbase estimates that users in California have missed out on more than $89 million in staking rewards since 2023, compared with more than $15 million in New Jersey, according to the same report.
A small lift for a shrinking revenue line
Reopening one mid-sized state will not move Coinbase’s numbers much on its own, and the timing comes as the business line is already under pressure. The same quarterly filing shows blockchain rewards revenue, the line that captures staking, fell to $85.7 million in the third quarter of 2026 from $184.6 million a year earlier, a 54% drop. Over nine months it is down 49%. The filing does not tie that decline to the state cases, and lower token prices and reward rates are likely bigger factors.
California is a different matter. It led the multistate task force, and Cointelegraph reported that its action covered more than 600,000 accounts held by Californians. A reversal there would be worth far more to Coinbase and its users than New Jersey.
The decision also lands on the day of the US midterm elections, which will shape how much room federal lawmakers have to settle questions like staking at the national level. Federal regulators have been working through their own token guidance in the meantime, including a recent SEC staff FAQ on token governance. State securities bureaus, as New Jersey’s notice shows, keep their own enforcement powers regardless.
FAQ
Can New Jersey Coinbase users stake again?
Not yet confirmed. Brian Armstrong said access would return “very soon,” but Coinbase has not announced a date.
Did New Jersey rule that staking is legal?
No. The bureau rescinded its order without prejudice and without a ruling on the merits, so it can bring a new action later.
Which states still have staking cases against Coinbase?
California, Maryland, Wisconsin and Washington. The first three still block new staking, while Washington allows it but is seeking a $4 million fine.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
