SEC complaint on centralized exchanges why always a step back for crypto

Crypto project with Its emergency step back is what always surprised me. Honestly I always surprised how a crypto exchanges problems always leads step back for crypto. This has become usually thing that happens, whenever there is complaints, or failed of any centralized exchanges it cause ripple effect on the market.
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Maybe there is something I need to understand that I don't know in how centralized exchanges work and how their effects badly on crypto market. SEC complaint against several crypto exchanges either cause an heavy downturn for crypto or keep the market stagnant.

The shocking one recently is the complaint against Binance a lending cryptocurrency. SEC and Binance had a longtime dialogue, which SEC looking for way to wind down Binance.US operation, this move was disappointed because right form time binance has been actively cooperating with Commission investigation.

Binance made all effort to reach a negotiation settlement with SEC enforcement law Against the company. Despite the company being criticized by SEC for offering unregistered assets, the company still remains committed and continue cooperating with regulations and stand to defend the enforcing lawsuits and continue to provide safe and service to its customers.

I always say something, crypto did not need force regulations, if US continue in that manner it going to affect people and not alone investors, part of US financial system will be affected as well. The SEC's aggressive move against Binance could have implications for the cryptocurrency industry and if crypto industry it been affected it will give room for people to opt-out of centralized exchanges. I keep wondering how this situation will unfold and hope it won't impact badly on crypto, the future of digital assets and blockchain technology.