The legislation was unveiled by Senate Banking Committee chairman Christopher Dodd and includes a range of other measures, such as giving the Federal Reserve the power to break up large banks if they pose a "grave threat" to the economy.
It also contains a recommendation that Barack Obama's Volker Rule plan, which would restrict how retail banks are involved with hedge funds, is only introduced following a period of study by a new stability council.
Gilbert Schwartz, a former Federal Reserve attorney, told Bloomberg that the bill does not go far enough.
"It has a lot of the same provisions that we've already seen," he said. "It's more of a ho-hum proposal."
Earlier this month, Mr Dodd rejected calls from Republicans to delay the bill in order to draw up a fuller program of reform, stating that such requests were "terribly naive", reported Reuters.
By Claire Archer