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.
Summary
- New Jersey notified Coinbase on Oct. 29 that it intends to rescind its enforcement order.
- Existing New Jersey stakers have remained eligible for rewards, with new staking restricted.
- Five states withdrew their staking actions against Coinbase in March and April 2025.
- Coinbase’s eligibility page still lists New Jersey restrictions, without a confirmed reopening date.
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Customers can unstake their assets at any time, but principal withdrawn from staking and rewards already earned cannot be put back into the service under the listed restrictions.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.
Coinbase groups New Jersey with California, Maryland and Wisconsin in its current restrictions table. Washington appears separately: residents there remain eligible to stake despite the exchange having received regulatory notices.
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.
The dispute concerned the legal treatment of Coinbase’s service for customers participating in that process. Coinbase has consistently challenged the claim that its staking services constitute securities.
In a July 2023 statement, the company said California, New Jersey, South Carolina and Wisconsin required it to prevent retail customers from staking additional assets while proceedings continued. Crypto staked before the orders remained unaffected, according to that announcement.
Coinbase said it would comply with the preliminary orders while defending its services. Its quarterly filing records agreements with those four states in July 2023, followed by a similar agreement with Maryland in October that year.
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.
In an April 2025 statement, Ryan VanGrack, writing for Coinbase, urged the remaining states to end their cases. He argued that the restrictions singled out Coinbase while residents could access staking through other providers.
The company estimated then that customers in California, New Jersey, Maryland and Wisconsin had missed more than $90 million in rewards. The figure was Coinbase’s estimate across four states, without a separate New Jersey total.
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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