Coinbase announced that it will relocate its legal registration from Delaware to Texas. The move was confirmed by the company’s Chief Legal Officer Paul Grewal in an op-ed for The Wall Street Journal. The decision comes roughly a year after Elon Musk re-registered both Tesla and SpaceX in Texas.
Grewal said the move was prompted by “unpredictable decisions” coming from the Delaware Chancery Court, which, in his view, undermined the state’s long-standing reputation for legal stability. “Delaware’s legal framework once offered companies predictability. That time is gone,” he wrote.
Texas, among other advantages, allows companies to limit shareholder lawsuits against executives for alleged breaches of fiduciary duty. This legal protection has become a major reason why large corporations are increasingly shifting their registrations to the state.
Alongside Coinbase, companies such as Dropbox, TripAdvisor, and venture capital firm Andreessen Horowitz have also announced their exit from Delaware. Criticism intensified after a February 2024 court ruling that forced Tesla to void Elon Musk’s multibillion-dollar compensation package.
There is also a political parallel between Coinbase and Musk: both CEOs — Brian Armstrong and Elon Musk — financially supported Donald Trump’s 2024 presidential campaign. Meanwhile, Coinbase continues to face Delaware court cases stemming from lawsuits related to its 2021 IPO.
According to the company, the transition to Texas will be completed in the coming months. Coinbase will remain listed on Nasdaq.
It also became known that on Wednesday, November 12, Coinbase ended acquisition talks with the UK-based stablecoin firm BVNK — a deal that could have become one of the largest mergers in the history of the crypto industry.
Several crypto and blockchain companies already operate in the Lone Star State, including mining firms such as Riot Platforms, MARA Holdings, and Bitdeer. Austin, the state capital, is also home to major tech offices for companies like Meta and Google.
A Coinbase representative told FORECK.INFO and other outlets that the company “does not currently plan to open a physical office in Texas.”
“Coinbase’s move strengthens Texas’s position as an innovation hub and underscores our commitment to maintaining our status as the nation’s leading business destination,” said Texas Senator Charles Schwertner, one of the original sponsors of the state bill establishing a strategic Bitcoin reserve.