OPINION
Dear Friends,
I’ve been saying this for years folks and now you’re seeing it come home to roost. Activist judges Andre Bouchard and now Kathaleen McCormick have single-handedly destroyed the equity court system in America’s First State of Delaware, as I see it.Delaware has been falling and is now falling even more, as companies are choosing states like Texas and Nevada to flee to, from Delaware, which once dominated, but has been ruined by these corrupt Chancery Court judges. See the Wall Street Journal story below on Coinbase leaving Delaware for Texas. One of the big, up-and-coming companies choosing to leave Delaware and NOT champion it, tells you everything you need to know about the state of Delaware’s Chancery Court. Ruined by judges who used it for their own selfish means. It’s what I’ve been saying and warning you about, folks.
Please send you feedback, which is always welcome, on this big story. Respectfully Yours, JUDSON Bennett–Coastal Network Wall Street Journal story:
Why Coinbase Is Leaving Delaware for Texas
We’re reincorporating in a state whose legal climate is far friendlier to
business.
By Paul Grewal
Nov.12, 2025 8:23 am ET
Coinbase, the largest U.S.-based cryptocurrency platform, has filed with the
Securities and Exchange Commission Wednesday that it is leaving Delaware. We are reincorporating in Texas, which has become an increasingly attractive hub for innovative companies like ours. It’s a shame that it has come to this, but Delaware has left us with little choice.
As a lawyer who’s practiced for many years on King Street in Wilmington, I’m
saddened by the need to depart. For decades, Delaware was known for predictable court outcomes, respect for the judgment of corporate boards, and speedy resolutions. These traits made the state the one-stop shop for major company incorporations—which have brought in more than $1 billion in annual revenue to the state.
Delaware’s legal framework once provided companies with consistency. But no more. Delaware’s Chancery Court in recent years has been rife with unpredictable outcomes. To their credit, lawmakers in Dover have repeatedly tried to rectify the inconsistent outcomes of the once-revered court through ad hoc legislative responses. But companies need a more efficient and sustainable solution than relying on the legislature to fix judicial surprises after the fact.
We’re ambitious. We believe we can drive forward our mission rapidly if given fair conditions. 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.
This choice is much bigger than Coinbase. It’s part of a movement of businesses choosing markets with favorable regulatory and judicial-review systems. Several states have recently adopted policies aimed at increasing economic freedom, which drives competition—the laboratory of democracy at work. Businesses can choose which state is best for growth, innovation and their shareholders. This contest empowers businesses and innovators to leave jurisdictions that refuse to adapt.
Texas offers efficiency and predictability, in part thanks to recent corporate-law
reforms that enhance governance flexibility and legal predictability. Senate Bill 29 modernized the Texas Business Organizations Code to codify the business-judgment rule, which rightly empowers directors and officers to make the business decisions they need to innovate. This bill, together with the establishment of the Texas Business Court system, gives companies a business-friendly legal ecosystem with strong protections and efficient dispute resolution.
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.
Mr. Grewal is chief legal officer for Coinbase.