Coinbase Ditches Delaware for Texas: Why America's Largest Crypto Exchange is Making the Move
Image Source: Internet
In a significant development, Coinbase Global Inc., the US's largest cryptocurrency exchange, has announced plans to relocate its corporate headquarters from Delaware to Texas, joining the likes of Tesla and other major companies in the 'Dexit' trend. The decision, approved by the company's board on October 29 with 78.4% of voting power in support, was announced by Chief Legal Officer Paul Grewal in an X post. Grewal cited several reasons for the move, including Delaware's increasingly unpredictable court outcomes and the state's declining influence on corporate law. He also highlighted the financial benefits of relocating to Texas, where Coinbase will no longer have to pay Delaware's franchise tax, which previously cost the company around $250,000. Texas, on the other hand, has been actively courting crypto companies with a range of initiatives. In June, it became the first state to establish a Strategic Bitcoin Reserve, and it has also introduced laws to benefit Bitcoin miners and companies looking to relocate. These include House Bill 591, which allows energy companies to avoid severance taxes when using waste gas for Bitcoin mining, and Senate Bill 29, which provides companies with greater control over disputes and protects leaders from personal liability. Coinbase's decision is part of a broader trend, with companies increasingly looking to relocate to states with more favorable business environments. As Grewal noted, 'Competition among states is healthy and it empowers businesses and innovators that are on ambitious paths.' The company remains committed to its mission of increasing economic freedom through the development of the on-chain economy.
