Coinbase will incorporate in Texas, citing ‘legal climate’

Cryptocurrency exchange Coinbase will reincorporate to Texas from Delaware, a move highlighting the respective states’ legal and regulatory environments.

In a Wednesday X post, Coinbase Chief Legal Officer Paul Grewal said the crypto exchange would move its incorporation to Texas. In a Wall Street Journal op-ed, Grewal wrote that the climate in Delaware’s courts had become “rife with unpredictable outcomes,” while Texas offered “efficiency and predictability.” 

“This decision was not made lightly, but we’ll always do what’s best for our customers, our employees, and our shareholders,” said Grewal.

Coinbase announced in 2021, as COVID-19 restrictions lessened in the United States, that it would close its physical headquarters in San Francisco as part of the company’s “remote-first” policy.

Although the crypto exchange has since opened another location in the city and maintains offices in New York, it was incorporated in the state of Delaware.

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Grewal’s announcement followed Coinbase CEO Brian Armstrong saying that the company would “hire about 1,000 people” in the US as a result of the country’s regulatory environment for digital assets.

Armstrong has been a regular visitor to Washington, D.C., since the inauguration of US President Donald Trump, lobbying for a market structure bill and attending a White House crypto summit.

Texas as a US crypto and blockchain hub

Several cryptocurrency and blockchain companies have offices or operations in the Lone Star State, notably miners like Riot Platforms, MARA Holdings and Bitdeer. The city of Austin, the state’s capital, is also home to local offices of Big Tech companies like Meta and Google.

Cointelegraph reached out to Coinbase for comment on the Texas move, but had not received a response at the time of publication.

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This is a developing story, and further information will be added as it becomes available.