New Jersey has officially withdrawn its lawsuit against Coinbase regarding the exchange's staking services. This decision reverses a cease-and-desist order that had barred residents of the state from accessing the program since June 6, 2023. As a result of this two-year restriction, local users missed out on an estimated $15 million in potential staking rewards.
The move follows a broader trend of states dropping similar legal actions after the SEC dismissed its own case against Coinbase in February 2026. Similar lawsuits have already been closed in Illinois, Kentucky, South Carolina, Vermont, and Alabama. Coinbase maintains that no users have lost assets while utilizing its staking platform during these regulatory disputes.
Despite the progress in New Jersey, staking restrictions remain active in California, Maryland, Washington, and Wisconsin. The total amount of missed rewards for users across all states currently facing such limitations is estimated to exceed $110 million. Coinbase continues to advocate for a unified federal regulatory framework to replace the current fragmented state-by-state approach.
