I don't really know how big the impact of this regulation will be to the crypto market as a whole, but i would guess that the impact will not be so devastating. I do think though that this is another blow for the whole BSC-chain. I mean like until a half a year ago or so it really seemed like Binance and the BSC chain will continue to grow and that they are ahead of every other crypto company and chain, but in the recent months that has significantly changed in my opinion.
The volume on the BSC-chain is going down, while other chains like Arbitrum are getting used more and more. I don't hold any BNB myself but i am not sure if this coin will see it's ATH ever again.