The SEC will likely suggest a floating NAV for prime money market funds when it releases its anticipated proposed rule, according to BlackRock CEO Laurence Fink. The floating NAV requirement would apply to prime funds only; those funds that invest mainly in government securities could keep a fixed NAV. SEC staff has also reportedly met with staff from the IRS to discuss the tax implications of such a proposal. The chief concern is how to treat small gains and losses since every transaction in a fund with a floating NAV is a potentially taxable event. The IRS reportedly believes there is limited flexibility in interpreting current tax law.