April 12, 2022

Toomey: SEC Should Avoid Regulating Money Market Funds Out of Existence

Washington, D.C. – U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) wrote to Securities and Exchange Commission (SEC) Chairman Gary Gensler regarding the SEC’s proposed amendments to money market fund rules. The SEC voted on December 15, 2021 to propose amendments to certain money fund rules.

“Money market mutual funds are a valuable investment option for retail investors, an essential cash management tool for institutional investors, and a vital source of funding for governments and corporations,” Ranking Member Toomey wrote. “As you stated during your confirmation process, regulations should ‘ensure access to investors’ for MMFs ‘while also ensuring stability in our financial system.’”

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“The U.S. economy faces sustained high inflation and will see the money supply decrease to combat this inflation,” Senator Toomey continued. “Given these conditions, the need for a product that allows investors to obtain a higher return on investment while facilitating the provision of much-needed capital to municipalities and corporations is as vital as ever.”

To read Ranking Member Toomey’s full letter to Chairman Gensler, click here.