New Jersey’s Bureau of Securities rescinded a 2023 cease-and-desist order against Coinbase’s staking service and withdrew a $5 million penalty on October 30, clearing the way for the exchange to restore staking access to users in the state after a three-year ban.
Keith A. Alt, Acting Bureau Chief of the New Jersey Bureau of Securities, signed the notice of rescission. The action ends enforcement that had barred Coinbase from offering staking rewards to New Jersey residents since 2023, when California led a ten-state task force behind coordinated enforcement actions against the company’s staking business.
Coinbase CEO Brian Armstrong said the company would restore staking access to New Jersey users “very soon.” The exchange did not specify an exact date for the restoration.
Scope of the Rescission
The rescission was issued without prejudice and without a ruling on the merits. This means the New Jersey Bureau of Securities retains the legal right to bring a fresh enforcement action against Coinbase’s staking services in the future.
The lifting of New Jersey’s ban is significant given the scale of foregone rewards for users. New Jersey residents missed an estimated $15 million in staking rewards since the 2023 enforcement action began. California users covered by the 2023 task force actions, numbering 600,000 accounts, missed an estimated $89 million in staking rewards over the same period.
Ongoing Enforcement Elsewhere
New Jersey’s decision does not resolve the broader regulatory conflict over cryptocurrency staking. California, Maryland, and Wisconsin continue to pursue enforcement actions against Coinbase’s staking services, with those states having banned the company from offering new staking while cases remain pending. Washington’s regulator allows staking but continues an ongoing case seeking to impose a $4 million fine on Coinbase.
Political Context
The rescission arrives as midterm elections approach on November 3. New Jersey’s Democratic Governor Mikie Sherrill voted for both the CLARITY and GENIUS bills during her time as a House member. Senator Cory Booker, also a New Jersey Democrat, helped negotiate market structure legislation but opposed advancing CLARITY in September.
Political action committee Fairshake and affiliated super PACs have backed 19 Republicans and 14 Democrats in House races. Stand With Crypto, an advocacy group, has awarded A ratings to 332 members of Congress, up from 96 when the group launched in 2023. Senator Cynthia Lummis, a leading Republican advocate for the crypto industry, is set to retire in January 2027. A Democratic majority in the Senate would position Senator Elizabeth Warren, a crypto critic, to chair the Senate Banking Committee.
