New Jersey drops its three-year-old order against Coinbase staking and the $5 million penalty that came with it

Summary

New Jersey's Bureau of Securities has rescinded its 2023 cease-and-desist order against Coinbase's staking service, along with its $5 million penalty, Bitcoin Magazine and Cointelegraph reported.

The Oct. 30 notice, signed by Acting Bureau Chief Keith A. Alt, withdraws the order without prejudice and without a ruling on the merits, so the bureau could bring a new action later, according to both outlets.

Coinbase disclosed the move in its third-quarter filing, and CEO Brian Armstrong said New Jersey users would regain staking access "very soon," though Bitcoin Magazine said the exchange's eligibility page still listed New Jersey as restricted as of Monday and no reopening date has been announced.

California, Maryland and Wisconsin still bar new staking on Coinbase while their cases continue, and Washington allows staking but is seeking a $4 million fine, both outlets reported.

The outlets differ on how much New Jersey residents missed: Bitcoin Magazine and Coinbase's own estimate cited by Cointelegraph put it at about $15 million, while Coinbase general counsel Molly Abraham told Cointelegraph about $25 million.

Key facts

• The New Jersey order dates to June 6, 2023, when the state joined regulators in nine other states in a coordinated action alleging Coinbase's staking program was an unregistered securities offering. (Bitcoin Magazine)
• Coinbase's filing says the regulator told the company on Oct. 29 that it intended to rescind the order. (Bitcoin Magazine)
• New Jersey is the sixth of the original ten states to step back; Alabama, Kentucky, Illinois, South Carolina and Vermont dismissed, vacated or withdrew their actions in March and April 2025. (Bitcoin Magazine)
• The SEC dismissed its own June 2023 lawsuit against Coinbase, which named staking among its claims, in February 2025. (Bitcoin Magazine)
• "Staking services are not securities. The SEC has made this clear," Coinbase general counsel Molly Abraham said. (Cointelegraph)
• Coinbase estimates California users have missed more than $89 million in staking rewards since 2023. (Cointelegraph)
• Coinbase's filing calls the remaining state matters "preliminary" and says an adverse resolution "could have a material impact" on the business. (Bitcoin Magazine)