The planned withdrawal follows a broader trend of state regulators retreating from similar litigation. While the New Jersey Bureau of Securities originally targeted the exchange in June 2023, alleging that its staking services violated state securities laws, the company has consistently contested that characterization. Throughout the dispute, existing New Jersey customers were permitted to earn rewards on staked balances, but they remained barred from adding new principal or compounding their holdings.
Despite the notification, the exchange’s official eligibility portal still lists New Jersey among the jurisdictions where restrictions apply, and a specific date for the restoration of full services has not been confirmed. This follows a string of similar dismissals in 2025, when regulators in Alabama, Kentucky, Illinois, South Carolina, and Vermont vacated their respective actions. Coinbase estimates that users across several restricted states have missed out on over $130 million in potential rewards during the period of these enforcement actions. The company continues to urge remaining states, including California, Maryland, and Wisconsin, to drop their active cases and align with the shifting regulatory consensus.
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