Unlike the House bill, the legislation would not touch the Consumer Financial Protection Bureau, a longtime target of Republican lawmakers who view it as an unaccountable agency with too much power.
Representative Jeb Hensarling of Texas, the Republican chairman of the House Financial Services Committee, suggested this month that he did not expect his colleagues to just rubber-stamp the legislation that passed the Senate and that there would be changes to a final bill.
More than a dozen Senate Democrats, several of whom are facing tough re-election contests in states that President Trump won in 2016, backed the banking bill despite public criticism from members of the progressive wing of the party. They have said that they hope to avoid a conference process with the House that could lead to changes that they would find unacceptable.
“If the House overreaches in its effort to amend the Crapo bill, it could slow down the bill’s progress,” said Brian Gardner, an analyst at the financial services firm Keefe, Bruyette & Woods, referring to Senator Mike Crapo, the Republican of Idaho who is a sponsor of the measure.
The passage of the bill in the Senate has exposed deep rifts in the Democratic Party, with Senator Elizabeth Warren of Massachusetts publicly clashing with colleagues like Senator Heidi Heitkamp of North Dakota over what she calls the “Bank Lobbyist Act.”
“What does it say about Washington that Republicans and Democrats can’t come together to support common sense gun reforms or solutions for working families — but can come together to deregulate big banks on the 10th anniversary of the start of the 2008 financial crisis?” Ms. Warren said on Wednesday.
In an interview with The Atlantic this week, Ms. Heitkamp shot back: “I think people in North Dakota don’t care what Elizabeth Warren thinks.”
With the passage of the bill, the onus will now be on House Republicans to decide whether to push for more sweeping changes that will appeal to their base or settle for modest adjustments to Dodd-Frank that have a chance of passing and getting to the president’s desk for his signature.
Pressure to send something to the president’s desk will be great, as the White House expressed support for the Senate bill and urged Congress to press ahead in hopes of scoring another legislative achievement after last year’s $1.5 trillion tax cut.
“The president looks forward to discussing any further revisions the House is interested in making, with the goal of bipartisan, pro-growth Dodd-Frank relief reaching his desk as soon as possible,” the White House said in a statement on Wednesday.