Key Points
- New Jersey’s Bureau of Securities rescinded its June 6, 2023 cease-and-desist order against Coinbase on October 30, 2026, ending a 1,242-day ban on new staking for NJ users.
- The $5 million civil penalty was withdrawn alongside the order. The rescission was without prejudice and without a ruling on the merits, meaning the state can still bring a new action.
- Coinbase CEO Brian Armstrong said NJ users will regain staking access “very soon.” The company estimates NJ users missed more than $15 million in rewards during the ban.
- Six states previously dropped similar cases: Alabama, Kentucky, Illinois, South Carolina, Vermont (March-April 2025), and now New Jersey. The SEC dismissed its federal case with prejudice in February 2025.
- California, Maryland, and Wisconsin still bar new staking while their cases continue. Washington allows staking but its case seeks a $4 million fine. California users have missed over $89 million in rewards.
In June 2023, New Jersey became one of ten states that moved against Coinbase’s staking program, arguing the service constituted an unregistered securities offering. For 1,242 days, New Jersey users could not add new assets to Coinbase’s staking products. On October 29, 2026, New Jersey’s Bureau of Securities told Coinbase it planned to reverse course. The formal rescission notice, signed by Acting Bureau Chief Keith A. Alt, arrived on October 30.
What the 2023 Order Actually Did to NJ Users
The cease-and-desist did not freeze existing staked balances. Users already in the staking program kept earning rewards throughout the ban. What they lost was the ability to add new assets, restake, or compound their earnings. Once a user unstaked, they could not return to the service. Over three years, that compounding gap added up. Coinbase estimates NJ users missed more than $15 million in rewards. California, which has the largest user base and is still fighting, has missed over $89 million.
Timeline: How the Staking Battle Unfolded
| Date | Event |
|---|---|
| June 6, 2023 | New Jersey and nine other states file cease-and-desist orders against Coinbase staking. California leads the multistate task force covering 600,000+ accounts. |
| Feb 2025 | SEC dismisses its federal Coinbase case with prejudice. Cannot be refiled. |
| Mar-Apr 2025 | Alabama, Kentucky, Illinois, South Carolina, and Vermont withdraw their staking actions against Coinbase. |
| Oct 29, 2026 | New Jersey Bureau of Securities notifies Coinbase it intends to rescind the order. |
| Oct 30, 2026 | Formal rescission notice signed. $5M penalty withdrawn. Order lifted without prejudice, without merits ruling. |
| Nov 3, 2026 | Coinbase eligibility page still lists NJ restrictions. CEO Armstrong says access returns “very soon.” California, Maryland, Wisconsin remain active. |
State-by-State Scoreboard
| State | Status | Staking Now | Note |
|---|---|---|---|
| New Jersey | Dropped Oct 2026 | Resuming soon | $5M penalty also withdrawn |
| Alabama | Dropped Mar 2025 | Allowed | |
| Kentucky | Dropped Mar 2025 | Allowed | |
| Illinois | Dropped Apr 2025 | Allowed | |
| South Carolina | Dropped Mar 2025 | Allowed | |
| Vermont | Dropped Apr 2025 | Allowed | |
| Washington | Case Active | Allowed | Seeks $4M fine |
| California | Active · Staking Barred | Blocked | $89M+ rewards missed · 600K+ accounts |
| Maryland | Active · Staking Barred | Blocked | |
| Wisconsin | Active · Staking Barred | Blocked |
What “Without Prejudice” Means
The rescission notice is explicit on one point: the state is not conceding that staking is legal under New Jersey securities law. The order was dropped without an adjudication on the merits. The Bureau retains the power to bring a new action in the future. Coinbase has not registered its staking products as securities in New Jersey and has not agreed to do so. What changed is the enforcement posture, not the legal question. Whether that question is ever tested again depends on future regulatory and political conditions.
“New Jersey formally dropped its staking lawsuit against Coinbase, lifting the cease-and-desist order and clearing the path for NJ users to resume staking after years of missing out on millions of dollars in rewards.”
Molly Abraham, Coinbase General Counsel, via X · November 2026
What Happens Next
As of November 3, 2026, Coinbase’s eligibility page still shows New Jersey restrictions. Armstrong has said staking access will return “very soon” but no date has been announced. The pattern from previous states suggests access is restored within days to weeks of a formal order being lifted.
Coinbase’s legal team has named California, Maryland, and Wisconsin as the remaining targets. California carries by far the most weight: its case covers more than 600,000 accounts, and users there have missed over $89 million in rewards. California led the original 2023 multistate task force, and a resolution there would mark a decisive end to the staking enforcement era that began that summer.
Frequently Asked Questions
Can New Jersey Coinbase users stake now?
Not yet as of November 3, 2026. The legal order was lifted October 30 but Coinbase’s eligibility page still lists NJ restrictions. CEO Brian Armstrong said access returns “very soon.” Check Coinbase’s staking eligibility page directly for the latest.
Did NJ users lose their staked assets during the ban?
No. Existing staked balances continued earning rewards throughout the ban. What users could not do was add new assets, restake, or compound. If they unstaked, they could not re-enter the service. The $15M+ loss figure is estimated missed compounding rewards, not lost principal.
Does New Jersey dropping the case mean staking is legal there?
Not officially. The rescission was without prejudice and without an adjudication on the merits. The Bureau retained the right to bring a new action. No court ruled on whether Coinbase’s staking product is a security under New Jersey law. The enforcement action ended; the legal question remains unresolved.
What happened to the $5 million penalty?
The $5 million civil penalty was withdrawn as part of the rescission notice. Coinbase disclosed the move in its third-quarter 2026 filing. It has not been confirmed whether any portion of the penalty was paid before the withdrawal.
Which states are still blocking Coinbase staking?
California, Maryland, and Wisconsin still bar new staking while their cases remain active. Washington allows staking but its case seeks a $4 million fine. California is the largest remaining action by far, covering more than 600,000 accounts and an estimated $89 million in missed rewards.
Further Reading
The largest exchange hack in crypto history, with stablecoin freeze coordination central to the response.
Charles Hoskinson at the UN on crypto regulation, digital currencies, and blockchain’s role in global financial infrastructure.
Sources: Unchained Crypto; CoinCentral; FinanceFeeds; CryptoBriefing; Coinbase Q3 2026 filing | Published November 3, 2026 | CryptoNewsBytes.com | Not financial or legal advice.
