New Jersey Drops Coinbase Staking Suit

The state lifted its order barring residents from Coinbase staking, which had been in place since June 6, 2023.

Updated on Nov. 2, 2026 in Investing

Live Poll

Should crypto platforms be allowed to offer staking rewards to everyday customers?

New Jersey dropped its staking lawsuit against Coinbase and lifted the cease-and-desist order that had kept residents out of the company's staking program. Coinbase staking service is available to New Jersey residents again.

Why it matters

The order had cost New Jersey users an estimated $15 million in staking rewards during the restriction period. The decision follows dismissals of similar actions in several other states and the SEC's February 2026 dismissal of its parallel case.

New Jersey users missed an estimated $15 million in staking rewards under the order that began June 6, 2023, while the estimated missed rewards across restricted states exceed $110 million. Five states have dismissed similar actions against Coinbase, and four states still restrict its staking product, though the source does not say when New Jersey access will resume.

The players

Coinbase

A major U.S. cryptocurrency exchange that offers a staking service allowing customers to earn rewards on crypto assets.

Securities and Exchange Commission (SEC)

The U.S. federal agency that regulates securities markets and brought a parallel federal case against Coinbase's staking product before dismissing it.

The details

New Jersey enforced its position through a cease-and-desist order that barred residents from Coinbase's staking program, and regulators argued the arrangement amounted to an investment contract. Coinbase argued that staking is a service and noted that no users have lost assets while staking on its platform.

June 6, 2023: New Jersey's order locking residents out of Coinbase staking took effect.
2023: The SEC and several states sued Coinbase over its staking product.
February 2026: The SEC dismissed its parallel staking case against Coinbase.
November 2, 2026: New Jersey dropped its lawsuit and lifted the staking order.

Market Dynamics

New Jersey's dismissal follows the SEC's February 2026 dismissal of its parallel 2023 lawsuit against Coinbase's staking product, extending a pattern of retreat from enforcement against the service. Similar state actions were also dropped in Illinois, Kentucky, South Carolina, Vermont, and Alabama.

New Jersey residents who were locked out of Coinbase staking can expect access to return, potentially restoring their ability to earn staking rewards. Residents in California, Maryland, Washington, and Wisconsin remain restricted from the service for now.

The takeaway

Staking rewards are an investment-related feature whose availability depends on state rules, so residents should check whether their state currently permits staking before assuming access. Verify your state's status before committing assets to a staking program.