Coinbase Says New Jersey Plans to Withdraw Staking Order
New Jersey reportedly plans to withdraw a 2023 order that barred Coinbase customers from adding new assets to staking. That does not mean the order has been formally rescinded. Coinbase’s published rules still prevent New Jersey customers from staking new principal.
- Coinbase’s quarterly filing reportedly records notice from New Jersey dated Oct. 29, 2026.
- Some existing eligible balances may keep earning rewards, but customers cannot add funds or restake rewards.
- Coinbase has not said when, or whether, new staking will reopen in the state.
- The company’s estimates of missed rewards do not promise compensation.
A planned withdrawal, not a reopening
Crypto.news reported that Coinbase’s quarterly filing says the New Jersey Bureau of Securities notified the company on Oct. 29, 2026, that it intends to rescind a summary penalty and cease-and-desist order. The notice relates to an order issued in 2023. The filing describes a planned withdrawal, not a completed rescission.
New Jersey’s Bureau of Securities issued the original order on June 6, 2023, naming Coinbase Global and Coinbase Inc. The bureau alleged Coinbase’s staking products had to be registered under state securities law. Coinbase disputed that its staking service was a security. It said it would follow preliminary restrictions while defending the service.
Coinbase has not said when New Jersey residents will be able to stake additional assets. Its eligibility guidance, as described by Crypto.news, still lists New Jersey as restricted.
What New Jersey customers can do
Staking means committing crypto assets to help support a proof-of-stake blockchain. Validators process transactions and may earn protocol rewards for taking part. Coinbase offers a customer-facing service that lets people participate without necessarily running their own validator. The state’s allegations focused on the legal status of Coinbase’s service, not simply on how proof-of-stake networks work.
Under the restrictions listed by Coinbase, New Jersey customers cannot stake new principal, meaning assets committed to staking. Some eligible balances already staked can keep earning rewards, but customers cannot reinvest those rewards to compound them. If customers unstake, they cannot put the withdrawn principal or rewards back into the service while the restrictions remain in force.
The restrictions do not mean every affected customer has stopped earning rewards. Coinbase distinguishes between eligible balances already staked and new deposits. Its eligibility requirements also cover account standing, residence in an eligible jurisdiction and applicable tax-identification information. The company can change those requirements, including after customers have staked assets.
Coinbase’s restrictions table groups New Jersey with California, Maryland and Wisconsin. Washington appears separately, and its residents can still stake through Coinbase despite the company receiving regulatory notices there. A notice alone, then, does not necessarily mean a platform has blocked customers in that state.
Recent changes to state actions
Coinbase’s filing reportedly records agreements with California, New Jersey, South Carolina and Wisconsin in July 2023, followed by a similar agreement with Maryland in October 2023. That July, Coinbase said retail customers in the first four states could not stake additional assets while proceedings continued. Assets staked before the restrictions were unaffected.
The filing also says Alabama, Kentucky, Illinois, South Carolina and Vermont dismissed, vacated, rescinded or withdrew their actions during March and April 2025. These terms describe different procedural outcomes. They do not show that every state reached the same result or that a court settled the underlying securities question.
A regulator’s plan to withdraw an order also does not necessarily restore a product right away. The regulator’s formal steps and Coinbase’s customer eligibility rules are separate. The available information does not say what steps remain or when Coinbase might update its rules for New Jersey.
Coinbase’s missed-reward estimates
In April 2025, Coinbase estimated that customers in California, New Jersey, Maryland and Wisconsin had missed more than $90 million in rewards. In an Oct. 8, 2025 announcement that New York residents could stake ETH, SOL and other supported assets, Coinbase put the estimate for the same four states at more than $130 million.
Both figures are Coinbase estimates covering four states, not totals for New Jersey alone. Coinbase did not give a state-by-state breakdown or explain how it calculated the amounts in the announcements described by Crypto.news. Neither estimate promises compensation or, on its own, shows that customers are legally owed those amounts.
Key questions about Coinbase staking in New Jersey
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Has New Jersey rescinded its Coinbase staking order?
That has not been confirmed. The reported notice says the state intends to rescind the order.
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Can New Jersey customers stake new crypto on Coinbase?
Not under Coinbase’s published eligibility rules. The company has not said when new staking might become available.
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Can existing balances still earn rewards?
Some eligible balances already staked can keep earning rewards. Customers cannot add new principal or restake rewards under the listed restrictions.
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Are Coinbase’s missed-reward estimates compensation?
No. The estimates cover four states, do not give a separate total for New Jersey and are not a commitment to repay customers.
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Does the planned withdrawal settle the legal question?
No. The reported plan does not rule on whether Coinbase’s staking service is a security.
The reported information does not specify why New Jersey plans to withdraw the order, whether the move has conditions or what procedural steps remain. Until the state completes its action and Coinbase updates its eligibility guidance, New Jersey customers should assume the current restrictions remain in force.
