New Jersey has rescinded its 2023 cease-and-desist order against Coinbase’s staking service and withdrawn a $5 million penalty, Cointelegraph reported. The Bureau of Securities notice is dated October 30 and signed by Acting Bureau Chief Keith A. Alt. Coinbase said the regulator told it of the plan on October 29 and disclosed the move in its third-quarter filing.
The order had barred residents from staking new funds on the exchange for more than three years. The withdrawal is without prejudice and without a ruling on the merits, so the regulator could bring a new enforcement action later. Coinbase CEO Brian Armstrong said New Jersey users would regain staking access very soon. Coinbase estimates that New Jersey users have missed more than $15 million in staking rewards, a figure that comes from the company.
Other states are still pursuing the exchange. California led the ten-state task force behind the 2023 actions and banned new staking during its case, and Coinbase estimates its users have missed more than $89 million in rewards. Maryland and Wisconsin also banned new staking while their cases continue. Washington allows staking, but its case seeks a $4 million fine.
The decision came days before the US midterm elections. Whether other states follow New Jersey’s lead remains unclear.
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