For generations, most Americans have deposited their money in banks knowing that if somehow things went sideways, their funds would be covered by the full force of the government’s treasury. Up to $250,000 in losses are covered through the Federal Deposit Insurance Corporation (FDIC), born out of the ashes of the Great Depression. 

Crypto investors are probably wishing for an FDIC equivalent after Binance, the world’s largest crypto exchange, was hacked on Oct. 29, with an estimated impact of $6.3 billion, raising questions about the recovery of stolen funds and the broader fallout for crypto markets. About $3 billion of the stolen assets has been frozen so far, according to a Binance security update. 

The exchange pledged to cover all…