The FDIC is Guaranteeing What???

It looks like the FDIC will be guaranteeing store gift cards, according to their most recent release

• The new General Counsel’s Opinion No. 8 addresses the issue of whether the funds underlying stored value cards and other nontraditional access mechanisms qualify as “deposits” as defined in the Federal Deposit Insurance Act.
• Under the new opinion, the funds will be “deposits” to the extent that the funds have been placed at an insured depository institution. Consequently, the funds will be subject to assessments. Also, the funds will be insured (up to the insurance limit).
• In applying the insurance limit to a pooled custodial account, the FDIC will recognize the holders of the stored value cards (or other access mechanisms) as the owners of the deposits if the FDIC’s standard requirements for “pass-through” insurance coverage have been satisfied. Otherwise, the card distributor or other named accountholder will be recognized as the owner.
• The treatment of the funds underlying stored value products does not differ from the treatment set forth in the FDIC’s proposed rule published in August of 2005 (see FIL-83-2005 at http://www.fdic.gov/news/news/financial/2005/fil8305.html).

Let me be the first to say that this is fracking nuts.