Bitwise CIO calls for cooperative crypto regulation, says Bitcoin drop was one-off event

Matt Hougan, chief investment officer of Bitwise Asset Management, said Wednesday that Coinbase's (NASDAQ:COIN) recent friction with the Securities and Exchange Commission points to the need for regulators to cooperate more with the cryptocurrency industry as authorities look to craft rules for the market. In an interview with CNBC, Hougan also argued that the recent drop in the price of Bitcoin (BTC-USD) represented a "one-off event" that will provide "a pause that refreshes" in an otherwise bull trend. Commenting on regulation, The Bitwise CIO contended that authorities should work with industry players rather than impose "regulation by litigation" as in the Coinbase scenario. Overnight, Coinbase CEO Brian Armstrong unleashed a Twitter tirade aimed at the SEC, which informed the company that it may sue over the firm's planned Lend product. Hougan attributed Armstrong's reaction to "frustration" over the SEC's process but predicted that regulation will ultimately prove helpful for the