The SEC lawsuit against Binance has caused a major market crash, especially hitting BNB hard. It's worrying, and the future of BNB looks uncertain unless a solution is found. It remains to be seen if governments will have the upper hand in the crypto world.
The lawsuit definitely showed its effect on the market since Bitcoin and every cryptocurrency started dropping right after the news started spreading across different social media platforms and online news portals. As you mentioned some tokens are affected more than others including BNB which has faced significant drops since SEC has announced that they will take Binance to court.
The price of bitcoin began to recover and returned to exceed the threshold of $26,000, and this, according to my simple estimation, proves that users are finally aware that the US authorities targeting the Binance platform (and the Coinbase platform in parallel) is not a targeting of bitcoin, nor any of the decentralized projects that it is logical that it cannot be targeted. Technically due to its decentralized nature backed by blockchain.
Prosecuting these platforms, in my opinion, is indeed a matter of duty, and we (as a crypto community) do not have any institution capable of holding these platforms accountable for their intercontinental activity that does not adhere to state borders, which explains that the SEC is targeting the activity of these platforms directed at American users. In a comment, I mentioned that I am a supporter of these measures to limit the activities carried out by these platforms, which in their simplest form require licenses. One of the most important accusations leveled against both platforms is that both of them provide staking interest services, which is a banking product that banks are required to obtain a license to do and is supposed to be subject to government supervision.
The other important aspect of this issue is that centralized cryptocurrency projects that are produced from nothing (literally) and whose developers enjoy making profits are being targeted just by listing them on one of the platforms, and the Binance platform lists thousands of them on its systems, and I mean specifically what is defined as stable currencies. coins.
There is no need to panic about what is happening and the recovery of the market proves that the crypto community has understood the lesson of not targeting Bitcoin specifically and that Bitcoin cannot be actually targeted.
On Chain data proves the high volume of funds withdrawn from platforms to private wallets, and this is a good indication of the decline in confidence in trading platforms and the search for safer options.