Republican Alternative to Dodd-Frank Calls for Banks to Boost Capital

WASHINGTON—Wall Street banks would be able to break away from the 2010 Dodd-Frank regulatory-overhaul law under a Republican plan—but it would cost them billions of dollars.

The GOP plan set to be released by the chairman of the House Financial Services Committee on Tuesday in a speech in New York would provide financial institutions, large and small, an alternative to the existing postcrisis regulatory regime. They would be allowed to opt in to the alternative plan if they can surpass critical thresholds, including a...