Coinbase Restores Crypto Staking in New Jersey After Regulators Drop 2023 Order
Key Takeaways
- •The New Jersey Bureau of Securities formally withdrew its 2023 cease-and-desist order against Coinbase's staking services on Oct. 30, ending a restriction that lasted more than three years.
- •Eligible New Jersey customers can now stake supported cryptocurrencies on Coinbase and earn up to 12% APY.
- •The original June 2023 order alleged that Coinbase's staking products were securities requiring registration or an exemption and carried a $5 million civil penalty.
- •Coinbase General Counsel Molly Abraham said New Jersey users missed millions of dollars in staking rewards during the multi-year dispute.
- •Coinbase is continuing efforts to secure staking access in Wisconsin, Maryland, California, and Washington.
Coinbase, the largest cryptocurrency exchange in the United States, has restored crypto staking services for customers in New Jersey after state regulators rescinded a 2023 cease-and-desist order that had blocked the exchange from offering the products in the state.
The New Jersey Bureau of Securities formally withdrew the order on Oct. 30, ending a restriction that had kept local customers from accessing Coinbase staking for more than three years.
Under the restored service, eligible users can stake supported cryptocurrencies and earn up to 12% APY, according to Coinbase. Staking allows holders of certain cryptocurrencies to earn rewards by locking up tokens to help validate transactions on proof-of-stake blockchain networks. Because those rewards accrue only while tokens are staked, the multi-year restriction shut New Jersey customers out of that earning channel on Coinbase for the duration of the dispute.
The original June 2023 order directed Coinbase to stop offering staking-related securities in New Jersey unless the products were registered or qualified for an exemption from registration, and included a $5 million civil penalty. At the time, regulators alleged that Coinbase's staking products involved securities that needed to be registered or qualify for an exemption under state law. That registration-or-exemption requirement under state law is what has made staking availability on the exchange vary from state to state.
Coinbase General Counsel Molly Abraham said the state had dropped its staking lawsuit and lifted the order, allowing customers to resume earning rewards. In a post on X, she said New Jersey users had missed millions of dollars in rewards over the past three-plus years, and noted that Coinbase would continue pursuing staking access in Wisconsin, Maryland, California and Washington. Progress on those efforts is the next development to watch on this issue.
"Another one. New Jersey has formally dropped its staking lawsuit against Coinbase and lifted its cease-and-desist order, paving the way for our NJ users to resume staking after missing millions of dollars in rewards over the past 3+ years. Defending our users’ access to secure,…"
— Molly Abraham (@mollyisonchain) on X, November 2, 2026
Source: CryptoBriefing
