An update from PreserveMoneyMarketFunds.org, a lobbying offshoot of ICI, says, "Recent news reports note that the Securities and Exchange Commission is concerned about the accounting and tax implications of forcing money market funds to adopt floating net asset values (NAVs). SEC staff are reaching out to the Internal Revenue Service in their search for solutions. Here's a better idea: drop the floating NAV idea altogether. Floating the NAV would undermine the convenience and simplicity of money market funds -- and would cause millions of investors to face new accounting, tax, and legal complications. That's in part why hundreds and hundreds of businesses, not-for-profits, public entities, and individuals have gone on the record opposing proposals to float NAVs. For regulators, addressing these complications is no easy task. As Bloomberg reports, "IRS officials have told the securities regulator that they don't have much flexibility to interpret current tax law." Even if the complications could be addressed, floating NAVs likely won't further regulator goals of improving the stability of the financial system.... There are sensible ways to improve the regulation of money market funds. A floating NAV proposal, however, sure doesn't look like one of them."
