It may be just beginning. The incident has not had a strong impact because it may not have fully occurred yet. So far we see only some attacks and accusations. If the attacks escalate into active criminal cases, bans and all-out harassment, the market may react in the most unimaginable way. I believe that right now the conflict has not yet died down and, things are still to come and the worst may await us within a year or so.
I do not think that it would, this ain't even that serious right now, "criminal" case is way too much for something like this. At the very worst case what would happen could be giving them a fine, in turn of many million dollars of course but it's a fine anyway, and Binance will pay it and they will move on, that's all I am guessing it's going to happen.
I understand that people are a bit worried about what's going to happen but that's just not the case in this one. I think it would be important to just let it be for a while, let them handle it between each other and they will come to a conclusion and the problem will be solved. you think Binance wouldn't know what SEC wants, it's a bribe, Binance is billions of dollars worth company, they can handle it.
The criminal case is already a measure of last resort. Judging by how quickly Binance and SEC managed to agree, there was not such a serious situation, which could lead to such a sad outcome, as a criminal case or even the arrest of CZ. I'm more inclined to believe that it's all the usual market manipulation and FUD, and the situation itself is much less dramatic than various media are trying to describe it in the information field.