The Dodd-Frank Act targets sectors of the financial system believed to have caused the 2007-2008 financial crisis.
Up until 2007, lax regulation led to extremely risky lending practices, which caused a housing bubble that eventually burst and led to a global crisis, government bailouts for financial institutions, and a recession.
Responsible institutions include banks, insurance companies, investment banking firms, mortgage lenders and credit rating agencies.
Critics of the law argue that the regulatory burden it imposes could make US firms less competitive than their foreign counterparts.
In 2018, Congress passed a new law removing some of the Dodd-Frank restrictions.