Coinbase, the largest publicly traded cryptocurrency
exchange in the U.S., is moving its legal base from Delaware to Texas. The
company said the shift is driven by Texas’ more business-friendly environment,
lower operating costs, and growing regulatory clarity for innovative companies.

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The exchange announced on Wednesday that it has filed
with the Securities and Exchange Commission to formally leave Delaware. It will
reincorporate in Texas, describing the state as an increasingly attractive hub
for innovative businesses.

“Left With Little Choice”

Commenting about the decision, Paul Grewal, the Chief
Legal Officer at the exchange, lamented: “It’s a shame that it has come to
this, but Delaware has left us with little choice. “As a lawyer who’s practiced
for many years on King Street in Wilmington, Del., I’m saddened by the need to
depart.”

“For decades, Delaware was known for predictable court
outcomes, respect for the judgment of corporate boards and speedy resolutions.
These traits made the state the one-stop shop for major company
incorporations—which have brought in more than a billion dollars in annual
revenue to the state.”

Today @Coinbase is announcing our decision to leave Delaware and reincorporate in Texas. This decision was not made lightly, but we’ll always do what’s best for our customers, our employees, and our shareholders. 1/6

— paulgrewal.eth (@iampaulgrewal) November 12, 2025

But recent expansions of legal standards in Delaware,
particularly concerning controller liability, have heightened risks for
shareholder lawsuits.

Texas is becoming a magnet for large companies seeking
lower taxes, lighter regulations, and specialized business courts. Over the
past year, firms with valuations exceeding $1 billion have moved their legal
bases from Delaware—a trend quickly dubbed “Dexit.” High-profile moves include
Tesla’s headquarters relocation and Trump Media & Technology’s shift to
Florida.

More Firms Eye Texas

The state is also actively courting cryptocurrency
firms, promoting regulatory clarity and lower operating costs. This strategy
positions Texas as a potential hub for blockchain and fintech innovation,
contrasting with the uncertainty some companies face in other jurisdictions.

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With a market capitalization approaching $82 billion,
Coinbase’s reincorporation marks one of the largest corporate migrations to
Texas. The move signals that even highly regulated, publicly
traded companies are reevaluating Delaware’s advantages versus the operational
and legal benefits offered by other states.

For Coinbase, Texas offers a combination of cost
efficiency and regulatory clarity that may support its continued growth in the
volatile crypto sector.

This article was written by Jared Kirui at www.financemagnates.com.