Coinbase says New Jersey plans to lift 3-year staking order

Nov 03, 2026

Coinbase has disclosed that New Jersey intends to withdraw its staking enforcement order after more than three years of restrictions on customers adding new assets to the service.

Coinbase’s quarterly filing states that New Jersey’s securities regulator informed the exchange of its intention to rescind the summary penalty and cease-and-desist order on Oct. 29, 2026. The disclosure appears in the company’s account of state proceedings over its staking services.

The filing describes a planned withdrawal, without announcing a completed rescission or a date when residents can begin staking additional funds. Coinbase’s published customer guidance continues to list New Jersey among states with restrictions.

Coinbase’s New Jersey restrictions cover new staking

According to Coinbase’s eligibility guidance, New Jersey customers cannot stake new principal. Customers with existing eligible staked balances can continue earning rewards, although those rewards cannot be restaked or compounded.

Customers can unstake their assets at any time, but principal withdrawn from staking and rewards already earned cannot be put back into the service under the listed restrictions.

The policy has therefore allowed some residents to keep receiving rewards throughout the dispute, while preventing them from adding to their positions. Describing the restrictions as a complete three-year interruption of staking rewards would overlook customers whose existing balances remained eligible.

New Jersey’s action dates back to June 2023

The New Jersey Bureau of Securities issued its original order against Coinbase Global and Coinbase Inc. on June 6, 2023. The bureau alleged that the companies offered staking products that required registration under state securities law.

In the order, the bureau described staking as committing crypto assets to support a blockchain network. Validators process transactions on proof-of-stake networks and receive protocol rewards for their participation.

Five states withdrew their Coinbase actions in 2025

New Jersey’s planned withdrawal follows earlier decisions by Alabama, Kentucky, Illinois, South Carolina and Vermont. Coinbase’s filing records that those regulators dismissed, vacated, rescinded or withdrew their actions during March and April 2025.

As crypto.news previously reported, Alabama dropped its enforcement action in April 2025, leaving five states pursuing staking-related proceedings at that time.

South Carolina’s staking case dismissal followed a joint agreement between the exchange and the state attorney general’s securities division. Coinbase said staking was available again through its app and website following that development.

New York opened staking access in October 2025

Coinbase announced a separate expansion in neighboring New York on Oct. 8, 2025, allowing residents to stake ETH, SOL and other supported assets through its platform.

In that announcement, the exchange put estimated missed rewards across the four restricted states at more than $130 million. Neither estimate represents compensation promised to affected customers.

Coinbase’s current eligibility rules require an active account in good standing, residence in an eligible jurisdiction, and applicable tax identification information. The company reserves the right to change eligibility requirements, including after customers have staked assets.

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