On November 2, 2026, New Jersey’s Bureau of Securities announced it had rescinded the 2023 order that had banned Coinbase from offering staking services to residents. The order, which had also imposed a $5 million fine, is now withdrawn without prejudice, meaning the state can still pursue a new case if it chooses. The move effectively lifts the ban that had prevented New Jersey users from staking assets such as Ethereum (ETH) or Solana (SOL) on Coinbase for rewards.

ETH / USD
Source: CoinGecko. Prices are indicative.

Background of the Ban

In June 2023, the New Jersey Bureau of Securities declared Coinbase’s staking service an unregistered security. At the time, 145,270 residents were using the service, according to the state Attorney General’s office. Coinbase halted staking in four states shortly thereafter. The rescission follows a broader trend: Alabama, Illinois, Kentucky, South Carolina and Vermont dropped their cases in 2025, while the SEC dropped its lawsuit against Coinbase in February 2025.

Impact on Coinbase

Coinbase’s quarterly filing revealed that staking‑driven revenue fell 54% in the third quarter, from $184.6 million a year earlier to $85.7 million. The decline was largely attributed to lower prices for Solana and Ethereum and reduced reward rates, which cut another $18.9 million. Coinbase’s Chief Legal Officer Molly Abraham noted that New Jersey users had missed millions of dollars in rewards over the past three years, and the company estimated missed rewards across states at $90 million in April 2025.

What’s Next for Staking in the U.S.

While New Jersey’s rescission clears the way for residents to resume staking on Coinbase, the state’s Bureau of Securities stated it could still pursue enforcement action in the future. Other states retain restrictions: California, Maryland, Wisconsin and Washington still have agreements barring new staking, and Washington’s action remains open. Coinbase has warned that losing remaining state cases could materially hurt its business.

What to Watch

Regulators in California, Maryland, Wisconsin and Washington may soon announce their stance on Coinbase staking. Coinbase’s ability to recover staking revenue will depend on how quickly these states resolve their cases. Market analysts will monitor whether the SEC’s 2025 stance that protocol staking generally does not involve securities influences state decisions.