New Jersey drops Coinbase staking order ahead of crypto’s midterm test

New Jersey lifted its staking ban and dropped a $5 million penalty, clearing the way for Coinbase to restore staking access for users in the US state.

New Jersey’s securities regulator has rescinded its 2023 cease-and-desist order against Coinbase’s staking service, lifting a ban that stopped residents staking new funds on the exchange for over three years.

The Oct. 30 notice, signed by Acting Bureau Chief Keith A. Alt, withdrew the order and its $5 million penalty without prejudice and without a ruling on the merits. The wording leaves the Bureau of Securities free to bring a fresh enforcement action against Coinbase in the future. 

Coinbase disclosed the move in itsthird-quarter filing, stating the regulator informed the company on Oct. 29 of its plan to rescind. CEO Brian Armstrong said New Jersey users would regain staking access “very soon”. 

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