New Jersey’s securities regulator has withdrawn the 2023 cease-and-desist order that barred Coinbase from offering staking to new customers in the state, ending a three-year standoff that cost residents an estimated $15 million in forgone rewards.

The Bureau of Securities notice, dated Oct. 30 and signed by Acting Bureau Chief Keith A. Alt, rescinds the order and the $5 million penalty that came with it. The withdrawal is without prejudice and without a ruling on the merits. 

Coinbase disclosed the development in its third-quarter report filed with the Securities and Exchange Commission, which states that the regulator informed the company of its intent to rescind on Oct. 29.

Coinbase CEO Brian Armstrong said New Jersey users would regain access to staking “very soon.” 

As of Monday, the exchange’s eligibility page continued to list New Jersey among the states where customers cannot stake new principal, and no reopening date has been announced.

The order traces to June 6, 2023, when the New Jersey bureau joined securities regulators in nine other states — Alabama, California, Illinois, Kentucky, Maryland, South Carolina, Vermont, Washington and Wisconsin — in a coordinated action against Coinbase’s staking program. 

The states alleged the service amounted to an unregistered securities offering under state law. 

California led the task force; its action covered more than 600,000 accounts. In July 2023, Coinbase agreed with California, New Jersey, South Carolina and Wisconsin to block customers in those states from staking new funds pending final adjudication. Maryland reached a similar agreement in October 2023.

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