With the New Jersey Coinbase staking ban lifted, residents are closer to staking new funds again. The state withdrew its 2023 order and $5 million penalty, but Coinbase has not announced a reopening date. The restrictions lasted about three years and cost residents an estimated $15 million in forgone rewards.

Key takeaways

• New Jersey withdrew its 2023 Coinbase staking order and the accompanying $5 million penalty.
• The withdrawal does not decide whether Coinbase’s staking program is a security.
• Coinbase has not announced when New Jersey customers can stake new funds again.
• California, Maryland and Wisconsin still restrict new staking on Coinbase.

What changes with the New Jersey Coinbase staking ban lifted?

The withdrawal removes the state order blocking Coinbase from accepting new staking funds from New Jersey customers.

The Bureau of Securities notice, dated Oct. 30 and signed by Acting Bureau Chief Keith A. Alt, rescinds both the cease-and-desist order and its $5 million penalty. New Jersey is the sixth of the original ten states to step back from the coordinated staking action.

For customers, the main change is the path toward staking new principal again. Staking lets users commit eligible crypto assets to help support a blockchain network and earn rewards.

However, removing the legal restriction does not automatically restore access inside Coinbase. The exchange still needs to update its systems before residents can use the service.

When can New Jersey customers stake again?

Coinbase has not announced a date for reopening new staking to New Jersey customers.

CEO Brian Armstrong said users would regain access “very soon.” Yet, as of Monday, Coinbase’s eligibility page still listed New Jersey among the states where customers cannot stake new principal.

Coinbase disclosed the development in its third-quarter report filed with the Securities and Exchange Commission. The report, available through Coinbase’s SEC filings, says the regulator informed the company on Oct. 29 that it intended to rescind the order.

That filing describes a planned withdrawal, while the Oct. 30 notice records the formal action. Neither provides a customer reopening date. Residents should check their Coinbase accounts and the exchange’s eligibility information before assuming new staking is available.

Why did New Jersey restrict Coinbase staking in 2023?

New Jersey alleged that Coinbase’s staking service was an unregistered securities offering under state law.

On June 6, 2023, the bureau joined regulators in Alabama, California, Illinois, Kentucky, Maryland, South Carolina, Vermont, Washington and Wisconsin. California led the task force, and its action covered more than 600,000 accounts.

In July 2023, Coinbase agreed to block new staking funds in California, New Jersey, South Carolina and Wisconsin while the cases remained pending. Maryland reached a similar agreement in October 2023.

Existing stakes kept earning rewards

Customers who had already staked assets could keep earning rewards. However, they could not add principal or compound the rewards they received.

Lifting New Jersey’s Coinbase staking ban opens the door to removing those limits. It does not reimburse customers for missed rewards. Residents lost an estimated $15 million in potential earnings during the restrictions.

Coinbase has argued that the orders created an uneven market. In an April 2025 post, Ryan VanGrack said the restrictions singled out Coinbase even though residents could stake through other providers. The company estimated forgone rewards across the four restricted states at more than $130 million as of October 2025.

Does the withdrawal settle staking’s legal status?

No, the withdrawal does not decide whether Coinbase’s staking program is a security.

The bureau withdrew the order “without prejudice” and made no ruling on the merits. That means it preserved its ability to bring another action.

Coinbase’s filing also describes the state matters as “preliminary” and warns that an adverse resolution “could have a material impact” on its business. Withdrawing an order is therefore different from a court ruling that rejects the regulator’s legal claims.

Readers tracking other enforcement changes can also explore the separate case covered in what investors should know about the dropped BitClub Network charges.

Which states still have Coinbase staking cases?

California, Maryland, Washington and Wisconsin remain involved in the original group of state staking cases.

• California continues to bar new Coinbase staking while its case proceeds.
• Maryland continues to restrict new Coinbase staking.
• Wisconsin also continues to bar new staking on the exchange.
• Washington permits staking but is pursuing a $4 million fine.

Coinbase estimates that California residents have missed more than $89 million in rewards since 2023. Alabama, Kentucky, Illinois, South Carolina and Vermont dismissed, vacated or withdrew their actions in March and April 2025.

Why did the state cases outlast the SEC lawsuit?

State securities regulators can pursue state-law claims independently of the SEC’s enforcement decisions.

The SEC sued Coinbase in June 2023 and included staking among its claims. It dismissed that case in February 2025, but that decision did not end the separate state proceedings.

Federal policy has shifted without fully settling the rules. The CLARITY market structure bill passed the House in 2025 but stalled in the Senate. A future SEC or a future bureau chief in Trenton could revisit staking.

With the New Jersey Coinbase staking ban lifted, residents can prepare for renewed access, but they should wait for Coinbase to confirm availability. The withdrawal removes a major restriction and the $5 million penalty; it does not settle staking’s legal status or repay missed rewards.

(Source: https://bitcoinmagazine.com/news/new-jersey-drops-coinbase-staking-order)

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