How bad is this recent SEC ETF amendment?

They added this in a document a couple of days ago:

“Any enforcement action by the SEC or a state securities regulator asserting that Bitcoin is a security, or a court decision, to that effect would be expected to have an immediate material adverse impact on the trading value of Bitcoin, as well as the Shares. […] If a digital asset is determined or asserted to be a security, it is likely to become difficult or impossible for the digital asset to be traded, cleared or custodied in the United States […]. "

Source: https://www.sec.gov/Archives/edgar/data/1980994/000143774923033524/bit20231201_s1a.htm

So, how bad is it?

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