With SEC rules coming down on CryptoCurrency and everyone involved, its important for everyone to Verify Residency. Also, its to protect traders on the exchange.
These moves from SEC will add confidence to Investors as it will help removing scams, keeping control over ICOs. These ICOs can't run away just like it happened in the past.
This is correct, but keep in mind that the SEC regulations only affect the US citizens and projects registered in the US.