Well, I guess its been how many weeks now since the SEC sued Coinbase and Binance now and it looks like bitcoin price did not react that much threatening to touch the $20k level. Though it attempts to go below $25k after the SEC wants to freeze binance assets but immediately got back up when the judge decides to just let binance do their business as is while the investigations are on going. So, I don't think bitcoin may have fall at that level as the market sentiments are kind of positive right now. People seems buying the dip and trying to accumulate as prep for the upcoming bullrun that the halving may cause next year.
Suing someone isn't really that damaging. SEC charged Ripple 2 years ago and we are still watching that to unravel.
What happened is that SEC decided that many altcoins were securities, and now they are suing exchanges for allowing buying and selling of securities all along.
Keeping in mind that those weren't securities just while ago.
So now CEXes are unregistered security exchanges. Bittrex just gave up. There are many things that are weird in this but funniest thing is that either side could wint this. We are in uncharted waters and crypto is stlll relatively new. Regulations can still change a lot, even during the court fight. One thing i am certain is that this will get way more complex then it already is.