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New Jersey Drops Coinbase Staking Order and $5 Million Penalty
The Oct. 30 notice is "without prejudice," so the state can sue again. California, Maryland, Wisconsin and Washington still have staking cases open.
New Jersey's securities regulator rescinded its 2023 order against Coinbase's staking service on Oct. 30, dropping a $5 million penalty, a signed notice shows. The order had kept New Jersey customers from staking new funds since 2023.
The notice is "without prejudice." It makes no ruling on the merits, and Acting Bureau Chief Keith A. Alt keeps the power to bring a new case.
How staking works, and why a state objected
Proof-of-stake networks such as Ethereum and Solana pay rewards to holders who lock up coins to help confirm transactions. Coinbase does the locking for customers and keeps a cut of the rewards as its fee. In June 2023, New Jersey's Bureau of Securities said that service was a security that had to be registered before it could be sold in the state.
The money is real. Coinbase booked $85.7 million in blockchain rewards revenue in the third quarter, down 54% from $184.6 million a year earlier, its quarterly filing shows. The company blamed lower prices and reward rates, mainly for Solana and ether.
Four states are still on the list
Ten states moved against Coinbase staking in June 2023, the filing says. Alabama, Illinois, Kentucky, South Carolina and Vermont dropped their actions in March and April 2025. California, Maryland and Wisconsin still have agreements that bar new staking, and Washington's case is open, according to the filing and BeInCrypto.
Coinbase's filing says New Jersey told the company on Oct. 29 that it planned to rescind. It also says Coinbase disputes the state regulators' claims and will "vigorously defend" against them.
Neither the notice nor the filing sets a date for New Jersey customers to start staking new funds.
In our opinion: New Jersey got its staking back on paper before it got a date. The bigger stake sits in the four states still holding out, since each one keeps a slice of Coinbase customers out of a product that brought in $85.7 million last quarter. Watch Coinbase's state eligibility list: New Jersey coming off it is the step that turns this order into rewards.
Sources: New Jersey Bureau of Securities: Notice of Rescission of Summary Penalty and Cea · Coinbase Global Form 10-Q for the quarter ended Sept. 30, 2026 (SEC EDGAR) · BeInCrypto: New Jersey ends Coinbase staking ban after 3 years
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