New Jersey Lifts Staking Restrictions on Coinbase

The New Jersey Bureau of Securities has lifted a 2023 order that restricted staking services on the cryptocurrency exchange Coinbase. The company announced the resumption of service access for state residents after more than 3 years of restrictions.

The decision was formalized in a notice dated October 30, 2026. Coinbase's Chief Legal Officer Molly Abraham confirmed the lifting of the order, and Director of Public Policy Faryar Shirzad welcomed the regulator's decision.

The proceedings began on June 6, 2023, when the New Jersey Bureau of Securities accused Coinbase of offering staking services that the agency believed constituted an unregistered securities offering. The regulator then issued a cease-and-desist order and imposed a $5 million fine.

As a result of the restrictions, users from New Jersey could not place new crypto assets in Coinbase's staking program. However, previously placed funds could continue to earn rewards, so there was no complete cessation of service for existing program participants.

The new decision lifts the administrative order without addressing the original claims on their merits. This means the regulator did not definitively recognize Coinbase's legal position as correct and retained the option to initiate new proceedings under state law.

Despite the lifting of restrictions in New Jersey, Coinbase's disputes with regional regulators continue. Issues related to staking services remain unresolved in California, Maryland, Wisconsin, and Washington.

Amid regulatory changes, the company faces a reassessment of financial expectations. On November 2, investment bank Morgan Stanley downgraded its rating of Coinbase shares from Equalweight, implying a neutral portfolio allocation, to Underweight, suggesting a below-benchmark allocation. Bank analyst Michael Cyprys also reduced the target price for COIN shares from $258 to $120.

Morgan Stanley explained the revision by citing a decline in trading activity, a deteriorating revenue forecast, and uncertainty in the cryptocurrency market. The bank reduced its own revenue estimates for Coinbase in 2027 by 28%, and its forecast for adjusted EBITDA, reflecting earnings before interest, taxes, depreciation, and amortization with additional adjustments, by 47%.

In the third quarter of 2026, Coinbase reported a net profit of $719 million compared to $433 million a year earlier. A significant portion of the result was due to unrealized revaluation of cryptocurrency assets, while adjusted net profit was about $78 million.

After a 3.98% drop to $137.83 on November 2, Coinbase shares recovered in the next trading session. By the end of November 3, COIN shares rose by 5.53% to $145.45.

Thus, the lifting of restrictions in New Jersey allows Coinbase to restore one of its customer service areas but does not conclude regulatory disputes in other states. The further development of the company's business also depends on trading activity and financial results.