The Securities and Exchange Commission's proposal for money market funds to use floating net asset values could cost state and local governments millions dollars and force them to abandon MMF investments, market participants and a new study asserted Thursday.

Speaking as part of a panel discussion hosted by the U.S. Chamber of Commerce, Maryland State Treasurer Nancy Kopp said the floating NAV piece of the SEC MMF reforms proposed June 5 would have a serious effect on state and local finance.

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