In a move signaling a profound shift in America’s corporate geography, Coinbase Global Inc., the largest publicly traded cryptocurrency exchange in the U.S., announced plans to exit Delaware and reincorporate in Texas, citing the state’s increasingly favorable business environment and regulatory stance toward innovation.

The decision, revealed in a regulatory filing on Wednesday, positions Coinbase among a growing number of high-profile firms — from Tesla to Trump Media & Technology — that have abandoned Delaware in what has become known as “Dexit”: a wave of departures from the state once synonymous with corporate law stability.

Texas Emerges as the New Corporate Magnet

Texas has rapidly evolved into a preferred destination for billion-dollar companies, leveraging its pro-business tax policies, lighter regulatory frameworks, and new legislation creating specialized business courts tailored to corporate needs. The state’s efforts to attract blockchain, energy, and AI firms have made it a rising alternative to the East Coast’s traditional business strongholds.

“Texas is positioning itself as the jurisdiction of choice for the next generation of tech and financial innovators,” said Coinbase Chief Legal Officer Paul Grewal in an opinion piece published in The Wall Street Journal. “It’s a shame that it has come to this, but Delaware has left us with little choice.”

Coinbase’s move follows similar decisions by Tesla, which relocated its corporate headquarters to Austin last year, and Trump Media & Technology Group, which shifted to Florida in April. With a market capitalization nearing $82 billion, Coinbase’s relocation ranks among the most significant corporate exits from Delaware to date.

Delaware’s Grip on Corporate America Weakens

For decades, Delaware’s Court of Chancery was considered the gold standard for corporate governance and predictability, overseeing more than 65% of Fortune 500 company incorporations. Its reputation was built on legal efficiency, board deference, and clear precedent — features that gave corporations legal certainty.

However, recent rulings have rattled that image. Delaware judges have expanded the state’s most stringent legal standards, increasing corporate exposure to shareholder lawsuits. The tipping point came with last year’s landmark decision nullifying Elon Musk’s $56 billion Tesla compensation package, which reverberated across the boardrooms of America.

The ruling triggered a backlash from business leaders. Musk himself posted on X (formerly Twitter): “Never incorporate your company in the state of Delaware.”

“Delaware courts are increasingly unpredictable,” said a senior corporate attorney at a New York law firm. “What was once a jurisdiction known for clarity is now seen as activist and interventionist — precisely what major companies want to avoid.”

Texas Courts and Crypto-Friendly Climate

By contrast, Texas has actively courted the digital asset industry, passing legislation to clarify cryptocurrency regulations, recognize blockchain-based transactions, and offer legal frameworks for digital custody.

State officials, including Governor Greg Abbott, have repeatedly pledged to make Texas a “crypto capital of the world.” The Lone Star State already hosts a concentration of Bitcoin mining operations and blockchain startups, supported by lower energy costs and a decentralized regulatory approach.

“Texas’ openness to innovation, its respect for business autonomy, and its growing legal infrastructure for crypto make it an ideal home for Coinbase,” Grewal wrote.

The move also signals Coinbase’s determination to cement its U.S. presence amid heightened federal scrutiny. As Washington debates comprehensive crypto regulation, Texas offers a relatively predictable environment where blockchain enterprises can operate without the shifting interpretations that have plagued federal agencies.

A Broader Trend of Corporate Realignment

Coinbase’s relocation highlights a broader realignment of corporate America, as companies increasingly migrate away from traditional hubs like Delaware, New York, and California toward states offering lower taxes, less red tape, and more innovation-friendly policies.

“Dexit isn’t just about taxes — it’s about governance,” said Alexandra Hermann of Oxford Economics. “Companies are seeking jurisdictions that respect management discretion while still providing legal certainty. Texas has managed to strike that balance at the right moment.”

As for Coinbase, the move to Texas marks both a strategic repositioning and a symbolic rebuke of Delaware’s shifting legal philosophy. The company’s decision could embolden other tech and crypto firms to follow suit, further eroding Delaware’s long-standing dominance in corporate America.