[jrm4]

We can take this further: we have "law" and "law" has mechanisms to protect against and recover from theft, no matter what. It's true that the FDIC et al makes "recovery in the case of shenanigans" much easier, but none of it means "if someone steals bitcoin, it's impossible to recover because there's no FDIC for it."

(and perhaps even further than that, my earlier point is, "Joe Binance" is in so deep at this point that there's now likely enough of an incentive for parties who aren't "legal" to threaten him with violence or harm if he does something wrong.)

[shadowgovt]

The key idea here is replacement is different from recovery.

Recovery can take weeks, months, years, or be impossible (if the cash was burned, or the BTC routed to an account with a lost private key). While all that is going on, FDIC insurance on USD means (in the case of a rifle US bank) the Fed steps in and issues new cash to make the victim whole.

There is neither a mechanism for printing "emergency Bitcoin" nor a "victim's reserve" operated by a trusted third-party to do something similar if a Binance (for hypothetical example) goes rogue.

[verygoodname]

There is, if you are talking about "centrally-controlled" tokens/coins (e.g. USDC, USDT, BUSD). They can simply "lock" the stolen coins and print you new ones (as they have done before).

If you are talking about decentralized tokens/coins (BTC), then... yes, you can't arbitrarily seize or print new ones (but that resistance to arbitrary manipulation is generally considered a feature, not a bug).

And, again, in this case (sending money/assets to Binance, or even to a US-based exchange like Coinbase), FDIC would be irrelevant and not be triggered, even if you use USD (I assume it only applies to money kept in banks and not necessarily to money kept in other type of non-bank brokers or exchanges).