Senate Banking Committee Chairman Chris Dodd (D-Conn.) launched a tough opening salvo Tuesday in the regulatory reform debate, unveiling legislation that would go well beyond other plans to redraw the financial services regulatory map.

The bill would strip the Federal Reserve Board of its supervisory responsibilities for bank holding companies and state member banks, returning it to an entity designed primarily to conduct monetary policy. The Federal Deposit Insurance Corp., too, would lose its supervisory responsibilities and serve solely as a deposit insurer and agency that handles resolutions.

The bill sets the stage for several major battles, including one over a new consumer financial protection agency and another over a systemic risk agency.

In addition, it would require hedge fund advisors and private pools of capital with $100 million or more in assets to register with the SEC.

Dodd’s bill was similar one the House Financial Services Committee approved last month.

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