Per the 2013 U.S. Financial Services and General Government Appropriations Bill of the House Appropriations Committee, the SEC must perform an in-depth study on the effectiveness of the Commission's long standing rules, as well as the more recent money market regulatory reforms. In particular, Congress wants to know whether these rules help in providing liquidity to the capital and municipal markets and to what extent they promote and enhance money market fund stability, resiliency, and transparency.  This proposed legislation just adds to the ongoing discussion among US regulators, Congressional leaders, and international oversight bodies on the systematic risks still posed by money market funds.  

Following the financial crisis, regulators embarked on a two-step process of reforming the regulation of MMFs, despite an already comprehensive regulatory framework system of oversight. In 2010, the SEC approved new regulations intended to address credit quality, liquidity, maturity, and transparency concerns. Since that time, the SEC, legislators, the Fed, and market participants have vigorously debated further regulatory measures aimed at reducing the risk of a run on MMFs and providing a cushion against losses.  Are these further reforms necessary? Or have we done enough already?