As the Securities and Exchange Commission considers imposing further regulations on money market funds, those close to the $2.6 trillion industry say the revisions are unnecessary, could threaten the very existence of the 40-year-old business and would limit access to a vital source of funding for state and local governments.

Under a new proposal, changes would require money markets to convert from a stable $1 net-asset value to a “floating” NAV. Alternatively, another change proposes that funds retain their stable NAVs, but have capital buffers and, possibly, redemption restrictions.

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