Why Big Companies Are Moving From Delaware To Texas

Coinbase has decided to move its headquarters from Delaware to Texas. This is a big deal because Delaware has been the go-to state for businesses for a long time. But now, Texas is becoming a popular choice for companies. The reason for the move is that Texas has a more business-friendly environment. Coinbase's legal chief said that Delaware's courts are no longer as reliable as they used to be. He also mentioned that Texas offers a good mix of efficiency, predictability, and fairness. Coinbase is not the only company making this move. Tesla, SpaceX, and other big names have also reincorporated in Texas. This trend started after Delaware's court ruled against Elon Musk's pay package, which made other companies think about moving. Texas has been working hard to attract businesses. The state has introduced new laws that protect companies from shareholder lawsuits and offer tax incentives. Governor Greg Abbott has been a big part of this effort. Coinbase's CEO and legal chief said that the decision to move was not easy, but it's what's best for their customers, employees, and shareholders. It's also worth noting that both Coinbase and Andreessen Horowitz are currently facing a lawsuit in Delaware related to Coinbase's public listing in 2021. This move is a big blow to Delaware. The state has always been known for its strong corporate governance, but now it's facing competition from Texas. The legal chief of Coinbase even said that competition among states is a good thing because it empowers businesses and innovators.