Legislation freeing bank holding companies from overlapping state and federal securities laws passed the House and advanced in the Senate on Wednesday.
The bills would preempt some state securities regulations with new federal laws.
The House passed its securities regulation reform plan by a vote of 407- 8. It would exempt broker-dealers from most state reporting requirements and would loosen restrictions on lenders who extend credit for customers' securities purchases.
The Senate Banking Committee unanimously passed its securities bill, which exempts mutual funds from state registration rules.
The plan also exempts investment advisers registered with the Securities and Exchange Commission from most state reporting requirements. Conversely, investment advisers managing less than $25 million in assets could register with a state regulator and forgo SEC registration.
Also under the Senate bill, the SEC would no longer need a court order to force a mutual fund to change its name. The provision particularly affects banks, because several bank-managed funds have been forced to change names after the SEC argued customers might be misled to believe the investments were insured by the Federal Deposit Insurance Corp.
Senate Banking Committee Chairman Alfonse M. D'Amato said he hopes Congress will have a final securities package ready for President Clinton's signature by Aug. 3, when lawmakers begin a month-long break.