Major companies in the United States, especially those in tech and crypto, are making a shift away from Delaware to Texas. The latest to make that move is the largest crypto exchange in the U.S., Coinbase Global Inc. The exchange has just reincorporated in Texas from Delaware, eliciting a reaction from Tesla CEO Elon Musk.
Elon Musk’s Delaware fallout influences reaction
Musk, in a swift reaction to the development, described it as a “Good idea.” The short but direct post indicates that the tech entrepreneur endorses Coinbase’s decision to move away from Delaware.
Musk’s reaction is understandable considering that he moved his Tesla and SpaceX incorporations away from Delaware as well.
For context, Delaware’s court rulings affected Musk’s Tesla compensation package of $56 billion. Ever since then, Elon Musk has been very vocal in criticizing Delaware. He considers the ruling a regulatory and legal overreach and has continued to encourage companies to leave Delaware.
With Coinbase now reincorporated in Texas, it implies that Delaware no longer has the legal jurisdiction that governs corporate rules in the company. Therefore, Delaware’s shareholder rights, lawsuits and regulations no longer control the exchange.
The development suggests that more and more companies are pushing back on the state’s legal dominance, which has become unbearable. Some industry watchers speculate that if more companies move to Texas because of its business-friendly laws, it might evolve into a crypto base.
Interestingly, Texas has a strong appeal for crypto firms because of its business-friendly laws. Texas also does not have state income tax, and it is pro-innovation. This positions it as an ideal location for crypto activities, with more than 10% of Bitcoin mining located there already.
Tesla CEO and support for meme coin
Elon Musk’s reaction, from an entrepreneurial standpoint, is understandable. It also adds to his latest reactions to crypto-related topics. Recently, the Tesla CEO remarked about Bitcoin, terming it a fundamental energy-based currency. The comment was significant given Musk’s long silence about the flagship crypto coin.
Interestingly, Musk’s Tesla has shown support for another crypto project and accepts only Dogecoin (DOGE) as a form of digital payment. Musk himself has been known to influence the price outlook of the meme coin with his post on X.
However, in November, when Musk posted a short AI-generated video of the Japanese-bred dog Shiba Inu, it had no impact on the price of DOGE. The same was for the other dog-themed meme coin, Shiba Inu (SHIB).
Source: https://u.today/elon-musk-reacts-to-coinbases-reincorporation-in-texas-details
