New Jersey Drops Lawsuit, Clearing Way for Coinbase to Resume Staking Service

Coinbase has resumed offering crypto staking to customers in New Jersey, the exchange confirmed, following the state's decision to withdraw its lawsuit over the product. The move ends a restriction that had kept New Jersey residents locked out of staking rewards on the platform for about three years. New Jersey's securities regulators had originally challenged Coinbase's staking service, arguing it functioned as an unregistered securities offering. That action was part of a broader wave of state-level scrutiny directed at crypto exchanges earlier in the decade, as regulators debated whether staking-as-a-service products fell under existing securities law.