New Jersey Withdraws Coinbase Staking Order

New Jersey has withdrawn its 2023 cease-and-desist order against Coinbase’s staking service, ending the state restriction on customers adding new funds but leaving open the possibility of another enforcement action. The withdrawal did not decide the merits of the state’s case, and Coinbase’s customer guidance continued to list New Jersey restrictions after the notice. The state Bureau of Securities issued the withdrawal notice on October 30, removing the order and its associated $5 million penalty without prejudice. Acting Bureau Chief Keith A. Alt signed the notice. The bureau remains free to bring a new action against Coinbase. Coinbase’s third-quarter filing said the regulator informed the company on October 29 that it planned to rescind the order. The company said New Jersey customers would regain access soon, but did not give a date. Its published eligibility guidance still listed restrictions on new staking: customers with eligible balances already staked could continue earning rewards, but could not add new principal or restake rewards. The restriction had been in place since the state’s 2023 action. Staking involves committing cryptocurrency to help validate...