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Cryptocurrency exchange Coinbase announced Wednesday that it will reincorporate itself in Texas, becoming the latest company to move its business registration out of Delaware.
Coinbase announced the move in a regulatory filing, which said a majority of its stockholders voted to approve the company's reincorporation in Texas.
Texas has become an increasingly popular destination for U.S. corporations to register their businesses with its favorable business environment, friendlier tax rules, lighter regulatory regimes and new laws establishing a specialized business court system.
Several large companies have moved their legal headquarters out of Delaware in the last few years in what some have nicknamed the "Dexit."
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Coinbase announced it reincorporated in Texas, leaving Delaware. (Jakub Porzycki/NurPhoto via Getty Images)
Tesla switched its state of incorporation from Delaware to Texas last year in a high-profile move after Delaware's Court of Chancery voided CEO Elon Musk's massive compensation plan. Musk wrote on X after that ruling, "Never incorporate your company in the state of Delaware."
Other firms have moved their legal incorporation to states like Florida, as Trump Media & Technology did, while other companies have reincorporated in Nevada.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COIN | COINBASE GLOBAL INC. | 304.00 | -0.01 | -0.00% |
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Coinbase is the largest publicly traded cryptocurrency exchange in the U.S., and Texas has taken steps to attract crypto firms by touting lower operating costs and regulatory clarity.
"For decades, Delaware was known for predictable court outcomes, respect for the judgment of corporate boards and speedy resolutions," Coinbase chief legal officer Paul Grewal said in a Wall Street Journal op-ed on Wednesday.
Coinbase reincorporated in Texas for more legal and regulatory certainty. (Reuters/Dado Ruvic/Illustration/File Photo)
Grewal said Delaware's Chancery Court has been "rife with unpredictable outcomes" in recent years, and that while state lawmakers have tried to respond to that inconsistency, it's not sufficient for businesses.
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He wrote in his piece that Texas "offers efficiency and predictability" and touted the new Texas Business Court system as creating a business-friendly legal ecosystem.
Reuters contributed to this report.