For more than half a century, Delaware stood as America’s corporate capital, renowned for its business-friendly laws, respected Chancery Court, and consistent legal rulings. But in recent years, leftist activist lawmakers and politicized judges have undermined that very foundation, sparking an exodus of major companies seeking stability and fairness to more welcoming states like Texas and Nevada.
On Wednesday morning, Coinbase joined the growing exodus, announcing on its website and in a Wall Street Journal op-ed by Chief Legal Officer Paul Grewal that it is moving its state of incorporation from Delaware to Texas.
“For decades, Delaware was known for predictable court outcomes, respect for the judgment of corporate boards, and speedy resolutions,” Grewal wrote in the op-ed.
However, he pointed out that recent inconsistent Chancery Court rulings and reliance on ad hoc legislative fixes do not create a sustainable business environment.
“Our decision to leave is about ensuring more predictable opportunities for the company, our shareholders, our customers and the new on-chain ecosystem we’re building,” he noted, adding, “Texas offers efficiency and predictability, in part thanks to recent corporate-law reforms that enhance governance flexibility and legal predictability.”
Grewal concluded, “Delaware wasn’t always the go-to choice for companies. At one point it was New Jersey, and before that New York. We’ve reached another inflection point in corporate law. The more states that can credibly attract companies, the better—and we’d like to see Delaware step up to stay in the mix. But as for Coinbase, you can find us in Texas.”
Coinbase’s website headline announcing a new state of incorporation is great…
The exodus list from Delaware increases:
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Tesla: Moved to Texas.
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SpaceX: Moved to Texas.
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Trump Media & Technology: Moved to Florida.
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Dropbox: Moved to Nevada.
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TripAdvisor: Moved to Nevada.
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Roblox: Moved to Nevada.
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Pershing Square: Moved to Nevada.
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The Trade Desk: Moved to Nevada.
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AMC Networks: Moved to Nevada.
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Madison Square Garden Sports: Moved to Nevada.
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Fidelity National Financial: Voted to move to Nevada.
One of the most high-profile exits came in June 2024, when Tesla shareholders voted to move the company’s incorporation to Texas. The decision followed a Delaware judge’s ruling that voided Elon Musk’s massive compensation package, prompting Musk to urge other companies to abandon Delaware. Has since passed (read report).
At the time, Musk said, “She’s a radical far-left activist cosplaying as a judge.”
She’s a radical far left activist cosplaying as a judge
— Elon Musk (@elonmusk) December 3, 2024
Let far-left Democrat-run states erode confidence with business leaders by their unhinged leftist lawmakers and woke judges, because their policies are driving people and businesses away – far away. Meanwhile, red states are gaining power as blue states rapidly slide into the abyss, plagued with violent crime, affordability crisis, illegal aliens, the rise of Marxism, and shrinking populations and tax bases.
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