In the wake of the Securities and Exchange Commission issuing Robinhood Crypto a Wells Notice, Bitwise CIO Matt Hougan took to X to argue that a "hostile regulatory environment" is benefitting Coinbase, the top cryptocurrency exchange in the U.S.

"The hostile regulatory environment is creating an artificial 'moat' for Coinbase's business, helping sustain extremely high margins and allowing them to over-earn in the short-term," Hougan said in a post. 

While Coinbase has long been at loggerheads with the SEC, last week it reported that it had generated $1.6 billion in revenue during the first quarter of 2024 amid rising transaction fees collected from both institutional and consumer clients.

On Monday, Robinhood Crypto, a competitor of Coinbase, said SEC staff has recommended an …