New Jersey Plans to Rescind Coinbase Staking Order That Imposed $5 Million Fine
Key Facts
New Jersey’s securities regulator told Coinbase on October 29, 2026, that it intends to rescind the summary penalty and cease-and-desist order related to staking services, according to the company’s quarterly report filed with the U.S. Securities and Exchange Commission. The notice means the state has announced its intention to take a procedural step, not that the order has already been rescinded. The order stems from an action taken by the New Jersey Bureau of Securities on June 6, 2023. The bureau then imposed a $5 million civil penalty, along with an order concerning unregistered or non-exempt securities offerings. The announced step puts the future of restrictions on the state’s staking service under review, while the outcome of the broader proceedings remains unresolved.
In its statement on staking services, Coinbase said it disagrees with treating those services as securities, but will comply with preliminary orders where required. The company said it would defend its services in proceedings brought by the states. Coinbase had said that four states—California, New Jersey, South Carolina and Wisconsin—were seeking to prevent retail customers from staking additional assets while the proceedings were pending. That places New Jersey’s notice within a process imposing temporary restrictions on adding new assets during the dispute. The filing did not say that the notice alone lifts those restrictions or set a date for rescinding the order.
The case began as part of a multistate effort led by the California Department of Financial Protection and Innovation, which included 10 securities regulators, among them New Jersey. The regulator said the joint task force was behind the action concerning the staking program. From the company’s perspective, the proceedings’ effects were not limited to New Jersey; the restrictions Coinbase cited also covered California, South Carolina and Wisconsin. In October 2023, the company reached a similar agreement with Maryland’s securities regulator. These developments show that New Jersey’s notice concerns one strand of a broader regulatory dispute over staking services.
Coinbase supports consumer staking of 8 assets through its platform, according to its 2025 annual report. As of December 31 of that year, the value of assets staked through the platform on behalf of individuals was about $7.5 billion. The figure describes the scale of the company’s retail staking activity and does not break out the value of assets belonging to New Jersey customers. The filing therefore does not establish how much could be affected by rescinding the order in the state. The data illustrate the service’s reach across the platform, while state proceedings over restrictions on retail customers remained ongoing.
In results for the quarter ended September 30, 2026, Coinbase reported net revenue of $1.2 billion, compared with $1.8 billion in the same period of 2025. Transaction revenue was $590.2 million, versus $1 billion a year earlier. Monthly transacting users totaled 7.4 million in the third quarter of 2026, compared with 9.3 million in the third quarter of 2025. The company attributed the decline mainly to fewer trading users, affected by broader market conditions. The results provide context on the company’s business in the quarter before New Jersey’s notice, without Coinbase linking those figures to the regulatory development.
Coinbase said the final outcome of the state cases remains uncertain and that it cannot currently estimate their potential effect on its business or financial statements. It added that an adverse resolution could materially affect the company’s business and financial statements. That caution is consistent with the New Jersey action remaining at the stage of an announced intention, rather than a completed rescission. The filing did not specify a subsequent date for completing the rescission or provide details on when restrictions on customers might change. The next step therefore depends on what the regulator does after the October 29 notice.