New Jersey securities regulators have rescinded their 2023 penalty and cease-and-desist order against Coinbase. The withdrawal clears the way for the exchange to reopen staking to state customers, though Coinbase has given no restart date.
New Jersey's Bureau of Securities has rescinded its penalty and cease-and-desist order against Coinbase, removing a state barrier to reopening staking for New Jersey customers. Coinbase CEO Brian Armstrong said access would return soon rather than announcing an immediate restart.
The order is gone, but the door stays open
The bureau's Oct. 30 notice rescinds the June 6, 2023 order, which imposed a $5 million civil penalty and directed Coinbase to stop offering unregistered staking securities in the state. The withdrawal is without prejudice, involves no decision on the merits and preserves the bureau's ability to bring future enforcement action, according to The Defiant.
Coinbase's eligibility page still lists New Jersey as restricted, meaning customers cannot stake new principal while existing eligible stakes can keep earning rewards. Armstrong wrote on Nov. 2 that "very soon, you'll finally be able to participate in staking again" but he gave no specific reopening date.
Other states still hold out
Crypto Briefing reports that the SEC dismissed its own parallel case against Coinbase in February 2026. Similar state actions have since been dismissed in Illinois, Kentucky, South Carolina, Vermont and Alabama, and New Jersey now joins that list, according to the outlet.
Four states have not followed, and Coinbase legal team member Molly Abraham identified Wisconsin, Maryland, California and Washington as the company's remaining staking fights, saying those states are next.
Their restrictions differ. California, Maryland and Wisconsin customers cannot stake new principal, while Washington residents remain eligible to stake, according to Coinbase. Washington's June 2023 statement of charges is a notice of intent to impose a cease-and-desist order, a fine and costs.
Sources: The Defiant, Crypto Briefing
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