Leaders of the National Association of State Treasurers are meeting with regulatory officials and members of Congress this week, urging them to oppose a major money market fund reform proposal and any alteration to the tax-exempt status of municipal bonds.

“Our emphasis is on the unintended consequences,” said NAST president and Virginia Treasurer Manju Ganeriwala. She said the Securities and Exchange Commission’s proposal to require most money market funds to use a floating net asset value rather than the current stable $1 per share would be harmful to state and local governments who use MMFs for short-term financing.

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