"In a Wednesday filing with the Securities and Exchange Commission, the crypto exchange said it will reincorporate in Texas, calling the state a "new business hub" with a friendlier environment for innovation. The move, revealed alongside an op-ed in The Wall Street Journal by Coinbase Chief Legal Officer Paul Grewal, marks a sharp rebuke of Delaware's once-unquestioned dominance. "For decades, Delaware was known for predictable court outcomes, respect for boards, and speedy resolutions," Grewal wrote. "It's a shame that it has come to this, but Delaware has left us with little choice.""
"Coinbase joins a growing list of firms - including Tesla, SpaceX, Dropbox, TripAdvisor and venture firm Andreessen Horowitz - that have relocated their corporate homes to Texas. The trend began after Delaware's Chancery Court ordered Tesla to rescind Elon Musk's $56 billion pay package earlier this year, a ruling that rattled corporate executives and prompted Musk to lead a public campaign urging companies to "get out of Delaware." Musk later reincorporated both Tesla and SpaceX in Texas, where new laws allow companies to limit shareholder lawsuits and protect board decisions from second-guessing by courts."
Coinbase will reincorporate in Texas, citing Delaware's increasingly unpredictable corporate legal environment and a friendlier setting for innovation. Coinbase cited Texas as offering efficiency, predictability, and fairness. The move follows a wave of firms including Tesla, SpaceX, Dropbox, TripAdvisor and Andreessen Horowitz relocating to Texas after a Delaware Chancery Court ruling ordered Tesla to rescind Elon Musk's $56 billion pay package, prompting corporate backlash and calls to leave Delaware. Texas enacted laws limiting shareholder lawsuits and protecting board decisions, and offered specialized business courts and tax incentives under Governor Greg Abbott.
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