II 

117TH CONGRESS 

1ST SESSION S. 2684 

To protect the investment choices of investors in the United States, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 9, 2021 

Mr. TOOMEY (for himself, Mr. MENENDEZ, Mr. ROUNDS, and Mr. PETERS) 

introduced the following bill; which was read twice and referred to the 

Committee on Banking, Housing, and Urban Affairs 

A BILL 

To protect the investment choices of investors in the United 

States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Financial 

5 Choice and Capital Markets Protection Act of 2021’’. 

6 SEC. 2. TREATMENT OF MONEY MARKET FUNDS UNDER 

7 THE INVESTMENT COMPANY ACT OF 1940. 

8 The Investment Company Act of 1940 (15 U.S.C. 

9 80a–1 et seq.) is amended by adding at the end the fol10 lowing: 


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1 ‘‘SEC. 66. MONEY MARKET FUNDS. 

2 ‘‘(a) DEFINITIONS.—In this section— 

3 ‘‘(1) the term ‘covered Federal assistance’ 

4 means Federal assistance used for the purpose of— 

5 ‘‘(A) making any loan to, or purchasing 

6 any stock, equity interest, or debt obligation of, 

7 any money market fund; 

8 ‘‘(B) guaranteeing any loan or debt 

9 issuance of any money market fund; or 

10 ‘‘(C) entering into any assistance arrange11 ment (including tax breaks), loss sharing, or 

12 profit sharing with any money market fund; 

13 and 

14 ‘‘(2) the term ‘Federal assistance’ means— 

15 ‘‘(A) insurance or guarantees by the Fed16 eral Deposit Insurance Corporation; 

17 ‘‘(B) transactions involving the Secretary 

18 of the Treasury; or 

19 ‘‘(C) the use of any advances from any 

20 Federal Reserve credit facility or discount win21 dow that is not part of a program or facility 

22 with broad-based eligibility established in un23 usual or exigent circumstances. 

24 ‘‘(b) ELECTION TO BE A STABLE VALUE MONEY

25 MARKET FUND.— 


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1 ‘‘(1) IN GENERAL.—Notwithstanding any other 

2 provision of this title, any open-end investment com3 pany (or a separate series thereof) that is a money 

4 market fund that relies on section 270.2a–7 of title 

5 17, Code of Federal Regulations, may, in the pro6 spectus included in its registration statement filed 

7 under section 8 state that the company or series has 

8 elected to compute the current price per share, for 

9 purposes of distribution or redemption and repur10 chase, of any redeemable security issued by the com11 pany or series by using the amortized cost method 

12 of valuation, or the penny-rounding method of pric13 ing, regardless of whether its shareholders are lim14 ited to natural persons, if— 

15 ‘‘(A) the objective or principal investment 

16 strategy of the company or series is not incon17 sistent with the generation of income and pres18 ervation of capital through investment in short19 term, high-quality debt securities; 

20 ‘‘(B) the board of directors of the company 

21 or series elects, on behalf of the company or se22 ries, to maintain a stable net asset value per 

23 share or stable price per share, by using the 

24 amortized cost valuation method, as defined in 

25 section 270.2a–7(a) of title 17, Code of Federal 


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1 Regulations (or successor regulation), or the 

2 penny-rounding pricing method, as defined in 

3 section 270.2a–7(a) of title 17, Code of Federal 

4 Regulations (or successor regulation), and the 

5 board of directors of the company has deter6 mined, in good faith, that— 

7 ‘‘(i) it is in the best interests of the 

8 company or series, and its shareholders, to 

9 do so; and 

10 ‘‘(ii) the money market fund will con11 tinue to use such method or methods only 

12 as long as the board of directors believes 

13 that the resulting share price fairly reflects 

14 the market-based net asset value per share 

15 of the company or series; and 

16 ‘‘(C) the company or series will comply 

17 with such quality, maturity, diversification, li18 quidity, and other requirements, including re19 lated procedural and recordkeeping require20 ments, as the Commission, by rule or regulation 

21 or order, may prescribe or has prescribed as 

22 necessary or appropriate in the public interest 

23 or for the protection of investors to the extent 

24 that such requirements and provisions are not 

25 inconsistent with this section. 


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1 ‘‘(2) EXEMPTION FROM DEFAULT LIQUIDITY

2 FEE REQUIREMENTS.—Notwithstanding section 

3 270.2a–7 of title 17, Code of Federal Regulations 

4 (or successor regulation), no company or series that 

5 makes the election under paragraph (1) shall be sub6 ject to the default liquidity fee requirements of sec7 tion 270.2a–7(c)(2)(ii) of title 17, Code of Federal 

8 Regulations (or successor regulation). 

9 ‘‘(c) PROHIBITION AGAINST FEDERAL GOVERNMENT

10 BAILOUTS OF MONEY MARKET FUNDS.—Notwith11 standing any other provision of law (including regula12 tions), covered Federal assistance may not be provided di13 rectly to any money market fund. 

14 ‘‘(d) DISCLOSURE OF THE PROHIBITION AGAINST

15 FEDERAL GOVERNMENT BAILOUTS OF MONEY MARKET

16 FUNDS.— 

17 ‘‘(1) IN GENERAL.—No principal underwriter of 

18 a redeemable security issued by a money market 

19 fund nor any dealer shall offer or sell any such secu20 rity to any person unless the prospectus of the 

21 money market fund and any advertising or sales lit22 erature for such fund prominently discloses the pro23 hibition against direct covered Federal assistance as 

24 described in subsection (c). 


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1 ‘‘(2) RULES, REGULATIONS, AND ORDERS.— 

2 The Commission may, after consultation with and 

3 taking into account the views of the Board of Gov4 ernors of the Federal Reserve System, the Federal 

5 Deposit Insurance Corporation, and the Department 

6 of the Treasury, adopt rules and regulations and 

7 issue orders consistent with the protection of inves8 tors, prescribing the manner in which the disclosure 

9 under this subsection shall be provided. 

10 ‘‘(e) CONTINUING OBLIGATION TO MEET REQUIRE11 MENTS OF THIS TITLE.—A company or series that makes 

12 an election under subsection (b)(1) shall remain subject 

13 to the provisions of this title and the rules and regulations 

14 of the Commission thereunder that would otherwise apply 

15 if those provisions do not conflict with the provisions of 

16 this section.’’. 

Æ 


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