The Securities and Exchange Commission, the US stock and options market regulator, has rejected calls to quash the "fair value" accounting rule that has been blamed for exacerbating the financial crisis, recommending instead for the rule to be improved in times of distress.

In a 211-page report to US lawmakers, the SEC said it found no evidence that fair value accounting rules played a significant role in the collapse of US financial institutions, and warned that the abrupt elimination of such requirements would "erode investor confidence."