Overview
- Late in October the New Jersey Bureau of Securities withdrew its 2023 cease-and-desist order against Coinbase’s custodial staking service and removed a $5 million penalty, a move Coinbase disclosed in its quarterly filing.
- The bureau made the withdrawal without a ruling on the merits and without prejudice, which means the state can still bring a new enforcement action later if it chooses.
- Coinbase says New Jersey customers should be able to resume staking very soon, but the company’s public eligibility page still lists New Jersey restrictions and it has not given a firm reopening date.
- The original restriction, issued June 6, 2023, only barred new staking contributions while allowing pre-existing staked balances to keep earning rewards with limits on restaking, and Coinbase estimates New Jersey users missed about $15 million in rewards during the pause.
- The rescission continues a pattern of some states dropping staking actions but leaves a patchwork of rules in place across the U.S., which industry groups and Coinbase say underscores the need for a clear federal regulatory framework.