U.S. securities regulators are preparing to exempt a majority of money market mutual funds from a central plank of rules intended to curb risks in the $2.6 trillion market, the Wall Street Journal reported, citing people familiar with the matter.
Last June the SEC put forth a plan, mostly focusing on prime funds for institutional investors, which called for two alternative proposals that could be adopted alone or in combination.
The first piece would require prime funds used by institutional investors to transition from a stable $1 per share to a floating NAV, while the second proposal would give fund boards for institutional and retail funds the authority to impose so-called "liquidity fees and redemption gates" during times of stress.
Read More Derivative trade brings bitcoin under US scrutiny
However, under a broad exemption being discussed, the SEC could allow retail money market funds to maintain stable $1 share prices instead of floating share prices, the Journal said.