The U.S. Securities and Exchange Commission was presented with a337-page staff proposal to require the $2.5 trillion money-marketfund industry to float share prices or hold more capital and curbredemptions, according to a person familiar with the proposal.

The proposal may put the SEC on course for a clash amongcommissioners and with the industry. The plan won't advance if thethree commissioners who have already raised concerns about itsimpact on money funds hold firm. If SEC Chairman Mary Schapiro winsenough support to release the proposal for public comment, theagency will face renewed opposition from the U.S. Chamber ofCommerce and Federated Investors Inc. Chief Executive ChristopherDonahue, who has threatened to sue if a rule is ultimatelyadopted.

SEC staff delivered the measure to the five commissioners onJune 25, two people said. It tracks with provisions Schapirooutlined in testimony last week before the Senate Banking Committeeand includes multiple questions for the public, the peoplesaid.