Proposed money market mutual fund rules by the SEC look good and should be the subject of House hearings starting in July, according to Rep. Scott Garrett (R-N.J.).

Garrett, chairman of the House Capital Markets Subcommittee, praised the proposals as “thoughtful and deliberate” in a speech to the Hedge Fund Association in Washington D.C. yesterday.

He said he was pleased they are the result of hard economic data. Garrett and other congressional Republicans have routinely criticized the SEC for writing rules without substantial cost-benefit analysis.

Garrett also said he is happy to see the proposed money market regulations do not include a requirement for a capital buffer against losses. The congressman said it would not make sense to apply bank type regulation to money market funds, which are more security based.

Garrett, noting he has yet to study the 700-page proposal in detail, said his subcommittee will start hearings on the money fund rules in July.

On June 5, the Securities and Exchange Commission proposed requiring all money market mutual funds to expand disclosures, including daily and weekly liquid assets levels, net assets per share and information on any changes in fees or redemption requirements.

Nearly 60 million investors participate in money funds.