Residents of New Jersey have been locked out of Coinbase staking since June 6, 2023, when the state issued a cease-and-desist order over the product. The state has now dropped the lawsuit and lifted that order, so users should be able to stake through the exchange again soon.

Regulators had argued that Coinbase running validators on behalf of customers amounted to an unregistered securities offering. Coinbase maintained it was a technical service, and the SEC dismissed its own parallel staking case against the exchange earlier.

New Jersey users are estimated to have missed at least $15M in staking rewards while the order was in effect, and the figure across all restricted states exceeds $110M.

Illinois, Kentucky, South Carolina, Vermont and Alabama had already dropped similar actions. Restrictions still remain in a few states, including California, Maryland and Wisconsin, and Coinbase continues to push for a single federal framework instead of state-by-state rules.