Coinbase Staking Returns to New Jersey as State Drops $5M Order

By Nodora News · 3 November 2026

New Jersey has dropped its 2023 Coinbase staking order and $5M fine, so residents can soon stake ETH and SOL again. Four states still block new staking.

New Jersey's securities regulator has withdrawn its 2023 cease-and-desist order against Coinbase's staking service, cancelling a $5 million penalty and clearing the way for residents to stake Ethereum (ETH), Solana (SOL) and other proof-of-stake coins on the exchange again. The notice, dated October 30, 2026 and signed by Keith A. Alt, Acting Chief of the New Jersey Bureau of Securities, became public on November 2 after Coinbase disclosed it in its third-quarter filing.

The order is rescinded "without prejudice", which means the state has not ruled on whether Coinbase staking is a security and keeps the right to bring a new case later.

Key takeaways

• New Jersey rescinded its June 6, 2023 staking order against Coinbase and dropped the $5 million fine.
• The rescission is without prejudice and makes no finding on the merits, so the state could act again.
• Coinbase says New Jersey users will be able to stake again "very soon".
• California, Maryland, Wisconsin and Washington still have open staking actions against the exchange.
• The move lands one day before the November 3 US midterm elections, which could reshape crypto policy in Congress.

What happened: New Jersey rescinds the Coinbase staking order

In June 2023, as the SEC and a group of US states moved against Coinbase, New Jersey's Bureau of Securities ordered the exchange to stop offering what it called "Coinbase Staking Securities" to state residents unless they were registered or exempt. The order also imposed a $5 million civil penalty. Coinbase stopped accepting new staking from New Jersey customers soon after.

Last week's one-page notice reverses that. It says the Acting Bureau Chief is rescinding the order without adjudicating it and without giving up the ability to take future enforcement action. According to Coinbase's filing, as reported by Cointelegraph, the regulator told the company on October 29 that it planned to withdraw the order.

Coinbase Chief Legal Officer Molly Abraham welcomed the decision on X, saying New Jersey users had missed out on millions of dollars in rewards over more than three years, and named the four states she expects to follow.

The numbers behind the staking ban

Staking means locking up coins to help secure a proof-of-stake blockchain in return for new tokens. Coinbase runs the validators for customers and keeps a cut of the rewards as a fee. Here is what the ban meant in figures, according to the reports:

• $5 million: the civil penalty New Jersey has now withdrawn.
• 145,270: New Jersey residents using Coinbase staking when the order was issued, per the state Attorney General's office (as cited by BeInCrypto).
• $15 million+: estimated staking rewards New Jersey users missed while the order was in force.
• $89 million+: Coinbase's estimate of rewards missed by California users since 2023.
• 4 states: California, Maryland, Wisconsin and Washington still have cases open.

California, Maryland and Wisconsin bar Coinbase from taking new staking deposits while their cases run. Washington allows staking but is still seeking a $4 million fine.

Why it matters for Coinbase and crypto staking

The decision is another step in the slow unwinding of the 2023 crackdown on crypto staking in the US. The SEC agreed to drop its lawsuit against Coinbase in February 2025, and SEC staff said in May 2025 that protocol staking generally does not involve securities, although that guidance is not binding. Alabama, Illinois, Kentucky, South Carolina and Vermont dropped their own staking cases in 2025.

For users, the practical impact is simple: New Jersey residents should soon be able to earn staking rewards on Coinbase again rather than moving coins elsewhere. For the exchange, staking is one of its biggest sources of non-trading revenue, so every state that reopens adds back customers.

The timing also stands out. The rescission came under Governor Mikie Sherrill, a Democrat who voted for both the CLARITY and GENIUS crypto bills as a House member, and just before midterm elections that could decide who controls the Senate Banking Committee. A federal market structure law would settle many of these state-by-state questions, but that bill has stalled.

Market reaction: ETH and COIN after the news

The news did little for prices on a cautious day. At the time of writing, OKX showed:

• Ethereum (ETH): about $2,256, down 0.1% in 24 hours
• Solana (SOL): about $92.19, down 1.8%
• Bitcoin (BTC): about $76,930, down 1.2%

Coinbase shares (COIN) closed Monday at about $137.80, down roughly 5%, as crypto stocks sold off and Morgan Stanley cut its price target on the company after weak third-quarter results. The wider market is still weighed down by the record $6.3 billion Binance hack and outflows from US spot bitcoin ETFs. You can follow more coins on the Nodora charts page.

What to watch next

• Staking restart date: when Coinbase actually switches staking back on for New Jersey accounts.
• The remaining four states: whether California, Maryland, Wisconsin and Washington settle or drop their cases.
• Midterm results: a change in Senate control could speed up or stall federal crypto rules, including how staking is treated.
• New action in New Jersey: the order was withdrawn without prejudice, so a future case is still possible, though nothing suggests one is planned.

For more on how US regulators and listed companies are handling crypto products, see our report on tokenized stock objections from Nvidia, Nike and others.

This article is for information only and is not financial advice.

#Coinbase #Staking #Ethereum #Regulation #New Jersey

This article is general information, not financial advice.