The Obama administration is contemplating allowing floating net asset values for money market funds, much to the chagrin of some in the industry. The Wall Street Journal's Eleanor Laise and Kara Scannell report that using variable NAVs is one of several money fund reform proposals the SEC may raise next week. ICI's Paul Schott Stevens and Crane Data's Peter Crane both chimed in to warn WSJ readers of the dangers of abandoning the $1 share price standard for money funds.

"If you float the value of a money fund, you've essentially destroyed the product," Stevens told the WSJ.

Other possible reforms, according to the WSJ, include: stricter regulation of the duration and quality of what money funds can invest in; and requiring money funds to have access to outside cash in a pinch. 

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