The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to The
Block, the strategist team of JPMorgan Chase pointed out that the recent prosecution of Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC) may lead to cryptocurrencies being regarded as securities and require exchanges to register as brokers. It also said that the implementation of regulation will bring more transparency and investor protection to the cryptocurrency market.

SEC prosecution triggers regulatory pressure

The strategist team of JPMorgan Chase pointed out that the SEC sued Binance and Coinbase last week, accusing them of violating U.S. securities laws. The SEC's prosecution may force these exchanges to register as brokers, treat cryptocurrencies as securities, and comply with regulatory provisions similar to those in traditional markets.

Note: The SEC claimed in the indictment that Coinbase itself played the three roles of the traditional securities market - exchanges, clearing agencies and trading brokers, and never registered for these three businesses.

Positive impact of regulation on the industry

JPMorgan Chase pointed out that although this may be painful for the crypto industry and greatly increase costs, regulatory pressure may bring similar constraints applicable to traditional financial markets such as stocks, bringing more transparency and investor protection. Regulation can eliminate bad behaviors and roles in the industry, which is crucial for future industry development and attracting institutional participation.

It is necessary for U.S. lawmakers to develop a clear regulatory framework to ensure that cryptocurrency activities are not transferred to other countries and decentralized entities.

 Ethereum benefits further, BNB still has value 

JPMorgan Chase pointed out that the tokens involved in the SEC prosecution, including Solana's SOL and Polygon's MATIC, are considered securities by the SEC, which may cause exchanges to delist these tokens and affect the potential development of their blockchains, which may be beneficial to the development of Ethereum, and Ethereum has the opportunity to further enhance its dominance in the field of smart contract blockchains.

The report specifically commented on BNB, which is led by Binance, saying that even if it goes bankrupt, as long as the BNB chain continues to operate, the BNB token is likely to maintain a certain value.