The Republican-led House Financial Services Committee has approved a bill that will undo large parts of the Dodd-Frank bank rules.
The rules were introduced in 2010 in an effort to avoid another financial crisis.
US President Donald Trump signed an executive order for a review of the regulations, which were designed to address risk in banking, shortly after entering the White House, saying he wanted it to be easier for banks to loan money.
The bill will now go to the Senate for a vote after the Committee voted 34 to 26 along party lines to pass the Financial Choice Act.
Speaking with a group of business leaders last month, Trump said: "We are absolutely destroying these horrible regulations that have been placed on your heads...You have regulations that are horrendous. Dodd-Frank is an example of what we're working on and we're working on it right now."
He added: "We're going to do a very major haircut on Dodd-Frank. We want strong restrictions, we want strong regulation. But not regulation that makes it impossible for the banks to loan to people that are going to create jobs."