Lawmakers in Congress have agreed on the most ambitious overhaul of rules overseeing Wall Street since the Great Depression.
The new bill creates a warning system for financial risks and a new bureau to monitor lending. The legislation will also force failing financial firms to liquidate.
Democrats hope the bill will prevent another economic crisis.
This weekend in Canada, President Barack Obama will try to get other world leaders at the G-20 summit to support the plan.
"This bill making its way through Congress will prevent another meltdown," Obama said.
He added that the compromise between the House and Senate includes about 90 percent of what he wanted.
The bill came together during a time of high unemployment for American workers, huge bonuses for bankers, and rising antipathy toward bank bailouts.
Obama admitted that America's growth and prosperity depend on a dynamic private sector.
"But we've all seen what happens when there isn't enough oversight or transparency," he added.
Forty-three negotiators worked on the House-Senate panel that formulated the final version of the bill. The president hopes the entire Congress will approve the compromise legislation by July 4.
But, Republicans say the bill has overreached and tackled financial issues that were not responsible for the financial crisis.
"This is wide ranging," Sen. Michael Enzi, R-??, said. "This is going to get into everybody's pocketbook."
Convincing G-20 Leaders
Obama arrived in Toronto, Friday, for the G-20 summit. While there, he hopes to convince leaders to join the effort to prevent worsening the global economic crisis.
Not all of the G-20 nations agree with Obama's plan. The president wants nations to keep spending on stimulus to keep economies up, while nations like Germany think governments should be more concerned with debt.
Meanwhile, security at the G-20 summit -- which has become a magnet for leftwing protests -- is tight.
"Our police are working very hard to identify anyone who might commit a violent act and doing their level best to make sure they don't," said Toronto Mayor David Miller.