The Senate passed the biggest loosening of financial regulations since the economic crisis a decade ago.
The bill would let hundreds of smaller banks avoid some federal oversight such as stress tests.
The new measure leaves key aspects of the earlier law in place.
However, it allows rollback of banking rules aimed at protecting taxpayers from another financial crisis and future bailouts.
Banks with $50 billion of assets are currently considered “systemically important” and are governed by more stringent regulations.
The Senate legislation raises that threshold to $250 billion, which would allow some high-profile institutions to shed the extra regulations.
The fate of the bill in the House remains unclear as House Republicans are expected to push for a more aggressive rollback.
