People go back and forth form banking and finance industries to the regulators of those industries all the time. Were they crypto companies unaware of their obligation to provide cushy jobs for "regulation" peoples, and that's what this is all about?
I am uncertain of your question, so I will answer as to what I think you are asking. Apologies if I misunderstood.
The charges by the US SEC against Biance are "The company failed to register as an exchange and broker-dealer, improperly commingled funds and lacked critical internal controls over its businesses".
I am just going to write a timeline here according to this single article & some dates from the US Gov sites (as there are several others that give way more details and slant).
2019-03 Gensler offers to serve as an advisor to Binance’s parent company. Gensler is Professor of the Practice at MIT Sloan School of Management
2019-03 Gensler and Biance CEO Changpeng Zhao meet in Japan for lunch
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Zhao & Gensler continue communication
Zhao sat down for an interview with Gensler as part of a cryptocurrency course Gensler was teaching at MIT.
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2019-07 Gensler sends Zhao a copy of his intended testimony ahead of the hearing before the US House Financial Services Committee
2019-07 Gensler testifies before the US House Financial Services Committee
2021-02 Gensler gets appointed as head of the US SEC
2023-06 SEC filed 13 charges against Binance and Zhao
[SEC says Binance and US affiliate redirected billions in customer assets to Zhao's funds](https://www.theblock.co/post/233652/sec-binance-and-us-affil...)
[Elusive Ex-Binance.US CEO Catherine Coley Reemerges in SEC Suit](https://www.bloomberg.com/news/articles/2023-06-07/elusive-e...)