New rules to reduce risk in money-market mutual funds will be proposed in the next two months by the U.S. Securities and Exchange Commission, which won't be slowed by a leadership change, a commissioner said today. Daniel M. Gallagher said the SEC's staff is working through technical details of the proposal, which failed to move forward last year under former SEC Chairman Mary Schapiro. Gallagher said he did not expect Mary Jo White, who takes over as chairman this week and sets its agenda, to slow consideration of the proposal, Gallagher said.

“It's not going to be long now that we get the draft up and start working through it and in the very near term have a proposal,” Gallagher said in an interview outside of an SEC conference in Washington.

The Senate confirmed White, 65, yesterday to join the commission. Her views on money funds aren't well known. At her March 12 nomination hearing, White said any new regulation should preserve the value of money-fund products for investors.

The SEC staff is considering the new regulations to reduce the likelihood that investors pull their money from the funds in a crisis, which could harm the broader credit markets. One option would have money funds adopt a floating share price, a move designed to make investors less sensitive to small variations in the $1 share price.

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