New Jersey to rescind enforcement order against Coinbase staking

New Jersey’s securities regulator has notified Coinbase of its intention to rescind a 2023 cease-and-desist order and a $5 million penalty regarding the exchange’s staking services. The decision, communicated on October 29, lifts a ban that has prevented New Jersey residents from staking new principal for over three years.

While existing stakers have remained eligible for rewards, they have been unable to add new funds or compound rewards. Coinbase CEO Brian Armstrong stated that New Jersey users should regain full staking access “very soon,” though the company’s official guidance has not yet provided a specific reopening date.

The regulator’s decision to withdraw the order without prejudice means the Bureau of Securities retains the right to bring new enforcement actions in the future. New Jersey joins several other states that have previously withdrawn similar actions against Coinbase. However, enforcement actions regarding staking services remain active in California, Maryland, Wisconsin, and Washington.