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The House voted 254-161 Thursday to pass the "Systemic Risk Designation Improvement Act of 2016" (H.R. 6392), which would revise the designation process for "systemically important" institutions that are subject to stricter supervision than others.

The bill would base the designation process on a company's risk and other criteria rather than just asset size.

Financial institutions would benefit under H.R. 6392, which would do away with the Dodd-Frank Act's current $50 billion asset threshold at which financial institutions automatically come under stricter supervision, including tougher rules and higher capital requirements.

The bill was introduced last week by House Financial Services Subcommittee on Housing and Insurance Chairman Blaine Luetkemeyer, R-Mo., and is similar to legislation he introduced last year.