New Jersey has rescinded the 2023 enforcement order that restricted Coinbase’s staking service in the state, removing a regulatory barrier that had remained in place for more than three years. Coinbase disclosed in its latest SEC filing that the state securities regulator informed the company on October 29 that it intended to withdraw the action. A subsequent notice dated October 30 formally rescinded the summary penalty and cease-and-desist order without resolving the underlying legal dispute.
The change clears the regulatory obstacle to restoring new staking for New Jersey customers, but that restoration is not yet complete. Coinbase’s current staking eligibility page still lists New Jersey among states where users cannot add new principal, restake rewards or return previously unstaked assets to the service. Coinbase CEO Brian Armstrong said New Jersey customers will be able to participate again “very soon,” indicating that product access still requires an operational update from the exchange.
New Jersey Withdraws a Three-Year Staking Action
The New Jersey Bureau of Securities originally issued its order on June 6, 2023, alleging that Coinbase offered unregistered securities through its staking program. The state assessed a $5 million civil penalty and said approximately 145,270 New Jersey investors had about $210.3 million associated with the staking offering as of March 29, 2023. The original order targeted Coinbase’s customer-facing staking service rather than proof-of-stake activity at the blockchain protocol level.
Coinbase subsequently entered an agreement with New Jersey in July 2023 under which customers could no longer stake additional funds while the proceeding remained unresolved. Existing eligible positions could continue earning rewards, although those rewards could not be compounded through restaking. The restriction therefore limited new participation rather than forcing every existing New Jersey staking position to exit immediately.
The October 30 rescission is also legally narrower than a court victory on whether Coinbase staking constitutes a security. The Bureau withdrew its order without prejudice and without an adjudication on the merits, preserving its ability to pursue future action under New Jersey securities law. That distinction matters as federal regulators have separately moved toward a narrower treatment of staking, with SEC-CFTC guidance distinguishing ordinary staking activity from securities transactions.
State-Level Restrictions Continue Elsewhere
New Jersey is part of a wider retreat from the coordinated state actions launched in 2023. Coinbase’s filing says Alabama, Kentucky, Illinois, South Carolina and Vermont dismissed, vacated, rescinded or withdrew their proceedings during March and April 2025. California, Maryland and Wisconsin still maintain restrictions on new Coinbase staking, while Washington has taken regulatory action without currently preventing residents from staking.
The state-by-state picture exists alongside a broader federal shift in crypto oversight. Agencies have increasingly addressed staking, token classification and secondary-market activity through interpretation and rulemaking even as U.S. crypto regulation continues developing without comprehensive congressional legislation. New Jersey’s decision removes one state-level enforcement constraint but does not create a nationwide legal rule for staking services.
The practical significance is consequently narrower than a national policy reversal but more concrete than the earlier notice of intent. Demand for staking itself remains substantial, with Ethereum’s staking ratio reaching record levels during 2026, making geographic access increasingly relevant to U.S. service providers. For New Jersey customers, the next measurable milestone is Coinbase actually updating its eligibility controls and reopening new staking, not the rescission announcement alone.