coinbase has FDIC insurance on customer USD and its hot wallets are fully insured.
CMIIW, but I was under the impression that Coinbase's insurance is only for them, not for customers. That is to say, they will cover your money if they are hacked centrally, but if your individual account is hacked or phished, then you are shit outta luck.
Most banks, on the other hand, will still reverse charges if someone steals your credit card, for example.
yeah i would never expect a crypto exchange to reimburse customers when they get their accounts hacked. no insurance company would underwrite a policy like that given how horrible the general publics security practices are.
banks and reversible transactions definitely have their place. and if retail banks start offering crypto deposit accounts in the future, they'll be faced with the same problems as exchanges today. if customers are allowed to withdraw crypto from their accounts like cash (on-chain to their wallet) then there's no way they can cheaply offer fraud guarantees like they do today. once those coins are withdrawn, there's no getting them back.
