Sure, but why is it any more absurd than creating a fund out of thin air to guarantee SVB deposits?
Money provided to individuals is highly trackable; ask anyone with student loans. And this would give the former SVB's employees something to do past the current 45-day window. More employment for the win!
Creating a system to work with one entity, especially a bank, is far easier than creating one to work with 10s of thousands of individuals, not to mention that you can do this work all abstracted behind the bank without any existing systems (payroll) having to consider anything.
Money provided to individuals is highly trackable; ask anyone with student loans. And this would give the former SVB's employees something to do past the current 45-day window. More employment for the win!