> Yes, it is possible. FDIC doesn't insure all deposits. Typically you're capped at X thousands across all your accounts. I'm not sure what the current value of X is, 250?

This is not correct. The FDIC is very concise with their commitments.

> A: Yes. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category.

Source: https://www.fdic.gov/resources/deposit-insurance/faq/

You are right. That's fair and an important distinction.

FDIC insurance is, standard, $250,000 per depositor, per insured bank, for each account ownership category. [1]

Brokerage balances are SIPC insured against brokerage defaults, but not a money market fund imploding. [2]

[1] https://www.fdic.gov/resources/deposit-insurance/brochures/d...

[2] https://www.sipc.org/for-investors/what-sipc-protects

Yeah, the UK had a bank run (Northern Rock) during the financial crisis in 2007. Once confidence was lost, some of the run was people with more money than our insurance limit in there, the rest ordinary small depositors who didn't feel like trusting an untested insurance mechanism when they could have banknotes.

That run was stopped by the government guaranteeing all assets and nationalising the Rock. That's not likely to happen with crypto.