Even though the SEC can't touch it, anything that can happen when storing assets on the exchange, what if there is a problem and CZ can freeze their balance of course this is very possible.
I know FTX has always sponsored some big competitions I used to not believe that such a big enough exchange but there was a customer money game in it, in the end it became a reality and FTX has been declared bankrupt as a result of its failure.
True, non-custodial wallets and hardware wallets are the best storage, I would not choose an exchange over long storage looking at previous FTX cases.
Even before FTX there was the MT.Gox case and we have enough to learn from some dark experiences that happened in crypto.
Will this happen to Binance? it depends on how CZ manages binance and user confidence is currently also decreasing, but with a few statements If binance.us is only affected, then users trust again.
Trust in the sense that they still want to use Binance as an Exchange for trading, but not for the main asset storage.
Hardware wallets are the main storage because they have good security and we have full control
(but don't choose wallets that provide seed Phrase recovery features).