New Jersey’s securities regulator has scrapped its 2023 Coinbase staking order, wiping out a $5 million penalty and a ban that stopped residents from staking new funds on the exchange.
However, the October 30 rescission is without prejudice, so the state can still bring a new case. It also lands as Coinbase’s staking-driven revenue fell 54% last quarter, putting New Jersey holders and Coinbase (COIN) shareholders in the story.
What New Jersey’s Order Changes for Coinbase Users
Staking means locking up coins such as Ethereum (ETH) or Solana (SOL) to help run a blockchain, in return for new tokens. Coinbase does this for customers and keeps a cut.
In June 2023, New Jersey’s Bureau of Securities called the service an unregistered security.
At the time, 145,270 New Jersey residents were using it, according to the state Attorney General’s office. Coinbase halted staking in four states weeks later.
The new order, signed by Acting Bureau Chief Keith A. Alt, makes no ruling on whether staking broke state law.
Coinbase Chief Legal Officer Molly Abraham said New Jersey users missed millions of dollars in rewards over three years.
In April 2025, Coinbase put missed rewards across states at $90 million.
Why Coinbase Shareholders Are Watching the Staking Fight
Blockchain rewards, mostly from staking, earned Coinbase $85.7 million in the third quarter, down from $184.6 million a year earlier, its quarterly filing shows.
Coinbase tied $111.8 million of that drop to lower Solana and Ethereum prices. Lower reward rates cut another $18.9 million.
The same October 29 filing first disclosed New Jersey’s plan to rescind. Coinbase also warned that losing the remaining state cases could materially hurt the business.
Which States Still Block Coinbase Staking
Federal pressure eased first. The SEC agreed in February 2025 to drop its lawsuit against Coinbase.
In May 2025, SEC staff said protocol staking generally does not involve securities. That view is not binding, and Commissioner Caroline Crenshaw disagreed.
Meanwhile, Alabama, Illinois, Kentucky, South Carolina, and Vermont dropped their cases in 2025, the filing shows.
California, Maryland, and Wisconsin still hold agreements barring new staking, and Washington’s action remains open.
Abraham listed all four in her post.
“Wisconsin, Maryland, California, and Washington are next.”
For now, federal regulators have stepped back from staking while four states keep the question open. Even in New Jersey, the order states the bureau may still take enforcement action against Coinbase in the future.
