The New Jersey Bureau of Securities has officially revoked its 2023 cease-and-desist order against Coinbase’s staking services via a notice dated October 30, 2026. The state regulator also dismissed a $5 million penalty previously levied against Coinbase.
However, the dismissal of the financial penalty includes specific legal stipulations ensuring the case is not permanently closed.
Right to Pursue Future Legal Action Remains Open
The revocation order was signed by Acting Bureau Chief Keith A. Alt under a clause of without prejudice. This clause establishes that the regulator made no decision on the merits of the past case, while retaining the legal authority to pursue new enforcement actions in the future.
Coinbase detailed this regulatory update in its third-quarter financial filing (Q3 filing) after receiving an initial notice letter from the bureau on October 29, 2026. Coinbase Chief Executive Officer Brian Armstrong stated that New Jersey customers would regain access to stake crypto assets in the near future.
How Much Users Lost Over Three Years
The regulatory order, in place since June 2023, restricted New Jersey residents for more than three years. Throughout that period, local users were prohibited from depositing new principal balances into staking features, although previously enrolled assets were still allowed to earn rewards.
Coinbase calculated that New Jersey customers lost out on more than $15 million in potential staking rewards while the restrictions were in place. The ban on adding new principal prevented asset holders from maximizing yields on their crypto portfolios.
The bureau’s shift in stance comes ahead of the United States midterm elections on November 3, under the administration of Democratic Governor Mikie Sherrill.
Four States Have Yet to Drop Lawsuits
New Jersey follows five other states that previously resolved similar disputes. Authorities in Alabama, Kentucky, Illinois, South Carolina, and Vermont had already dismissed or dropped enforcement actions against Coinbase’s staking services between March and April 2025.
Currently, four US states continue to actively challenge Coinbase’s staking program. Litigation remains ongoing in California, Maryland, and Wisconsin, while Washington regulators took a different approach by seeking a $4 million fine without barring local customers from using staking services.
For crypto asset holders in New Jersey, this decision restores flexibility in managing their holdings, though the $15 million in potential rewards missed over the past three years will never be recovered.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
