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Key takeaways
- Coinbase's quarterly report to the SEC says New Jersey's securities regulator told the company on October 29, 2026 that it plans to withdraw the June 2023 order, and the $5 million penalty that came with it, over Coinbase's staking service.
- Update, November 2, 2026: the plan is now done. New Jersey signed a notice on October 30 rescinding the order "without prejudice," which means the state can still bring a new case later. Coinbase CEO Brian Armstrong says New Jersey users will be able to stake again "very soon," but as of the evening of November 2, Coinbase's help page still lists New Jersey among the states where customers can't stake new crypto.
- California, Maryland and Wisconsin still have their own restrictions on staking through Coinbase. Five other states dropped their cases in March and April 2025.
- For New Jersey users, Coinbase's staking eligibility page shows the current rules. Staking rewards aren't guaranteed and aren't insured like a bank deposit.
New Jersey has dropped its 2023 enforcement order over Coinbase's staking service, the case behind the state's block on new staking since 2023. Coinbase first disclosed the plan in its latest quarterly report to the SEC, and the state has since published the signed notice. Here's what changed, why staking isn't back on in New Jersey yet, and what it means if you live there.
What happened
In its quarterly report for the period ended September 30, filed with the SEC on October 29, 2026, Coinbase says New Jersey's securities regulator informed the company that same day that it "intends to rescind its summary penalty and cease and desist order." The disclosure was reported by crypto.news.
The filing described a plan and gave no date. The state signed the rescission on October 30 (see the update above), but as of November 2 Coinbase hadn't switched staking back on for New Jersey residents.
The 2023 order
New Jersey's Bureau of Securities hit Coinbase with a cease-and-desist order and a $5 million penalty on June 6, 2023. The bureau said its staking service was a sale of unregistered securities, and ordered Coinbase to stop offering securities in the state unless they were registered or exempt. Its order counted about 145,270 New Jersey investors with roughly $210.3 million in the program as of March 29, 2023. Coinbase has disputed the claims throughout, and the filing says it still does.
Staking means committing your crypto to help run a proof-of-stake blockchain in return for rewards. On an exchange, the platform does the technical work and keeps part of the rewards.
In July 2023 Coinbase reached agreements with four states (California, New Jersey, South Carolina and Wisconsin) that stopped customers there from adding new crypto to staking while the cases played out. It made a similar agreement with Maryland in October 2023. Alabama, Kentucky, Illinois, South Carolina and Vermont dropped their actions in March and April 2025, according to the filing.
What New Jersey users can do today
Coinbase's staking eligibility page still puts New Jersey in one restricted group alongside California, Maryland and Wisconsin. For those four it says:
- No new crypto can be staked.
- Crypto staked before June 6, 2023 can stay staked and keep earning rewards, but the rewards aren't restaked.
- Coinbase says it will unstake anything staked from June 6, 2023 onward, plus that crypto's rewards.
- Customers can unstake at any time, but unstaked crypto and earned rewards can't be staked again.
Washington is listed separately: Coinbase says it received notices there, but residents can still stake. Coinbase's advocacy page estimates that New Jersey users have missed more than $15 million in potential rewards. That's the company's own figure, the page doesn't say when it was last updated, and it's based on rewards paid in other states, not an independent count.
What this means for you
- In New Jersey: the state's order is gone, but Coinbase's page still lists the restriction. Its eligibility page and app are where the change will show up.
- In California, Maryland or Wisconsin: nothing changes. Those states' restrictions are still in place.
- Everywhere else: nothing changes either. Coinbase says staking is fully available in other states.
- Staking still has risks. Rewards aren't guaranteed, prices can fall while your crypto is staked, and staked crypto isn't covered by FDIC or SIPC insurance.
The takeaway
New Jersey has rescinded its 2023 staking order, which leaves three states with restrictions on new staking. Washington's case is still open, but residents there can stake. Until Coinbase updates its page and app, New Jersey customers still can't stake new crypto. This is education, not financial or legal advice, and it reflects New Jersey's October 30, 2026 notice, Coinbase's October 29 filing and its help page as of November 2, 2026.
Frequently asked questions
I live in New Jersey. Can I stake new crypto on Coinbase now?
Not yet, as far as Coinbase's own help page shows. As of the evening of November 2, 2026 it still says New Jersey customers can't stake new crypto. The state rescinded its order on October 30, and Coinbase CEO Brian Armstrong says staking will return "very soon," but no date has been announced. Coinbase's staking eligibility page shows the current rules.
What happens to crypto I already have staked?
Nothing new. Under the current rules on Coinbase's help page, crypto that New Jersey customers staked before June 6, 2023 can stay staked and keep earning rewards, though those rewards aren't restaked. Coinbase says it will unstake anything staked from June 6, 2023 onward, plus that crypto's rewards. You can unstake at any time.
Does this mean staking is safe or guaranteed?
No. A state dropping a legal case isn't a judgment that staking is risk-free. Reward rates change, prices can fall while your crypto is staked, and staked crypto isn't covered by FDIC or SIPC insurance. Our staking guide explains the risks.
Is this advice to stake?
No. This is education, not financial advice.
Sources
- Coinbase Global, Inc. Form 10-Q for the quarter ended September 30, 2026, Note 20: Commitments and Contingencies (filed October 29, 2026) (opens in a new tab) — Coinbase via SEC EDGAR
- Staking eligibility (opens in a new tab) — Coinbase Help
- In the Matter of Coinbase Global, Inc. and Coinbase, Inc.: Summary Penalty and Cease and Desist Order (June 6, 2023) (opens in a new tab) — New Jersey Bureau of Securities
- Notice of Rescission of Summary Penalty and Cease and Desist Order (October 30, 2026) (opens in a new tab) — New Jersey Bureau of Securities
- Brian Armstrong on staking returning for New Jersey users (November 2, 2026) (opens in a new tab) — Brian Armstrong
- New Jersey drops Coinbase staking order ahead of crypto's midterm test (November 2, 2026) (opens in a new tab) — Cointelegraph
- Coinbase says New Jersey plans to lift 3-year staking order (opens in a new tab) — crypto.news
- Staking Action Dismissals (opens in a new tab) — Coinbase
Published November 2, 2026 by Dave McNaught. Educational content, not financial, legal or tax advice. Spot an error? Request a correction.
Dave McNaught
Dave McNaught has worked in IT since 1999 and founded All Business Technologies (ABT) in 2003, a Boston-area firm providing Managed IT, Cybersecurity, Managed AI, Web Design and App Development. He publishes The Crypto Guide.