The SEC's lawsuits against Binance and Coinbase have caused concern about the competitiveness of the US digital asset ecosystem, but could result in massive legal fees for lawyers. A former senior trial counsel at the SEC predicts that legal fees for each exchange could exceed $100 million. If the exchanges lose the lawsuits and Congress fails to act, it could shut down crypto in the US as it exists today.

The SEC's complaints also focus on the market structure of crypto exchanges, which bundle together services like trading, custody, and brokerage that are typically separate on Wall Street. Coinbase has argued that it has tried to engage with the SEC on creating a registration path, but has received no feedback.