"There's no room for state law," John Ryan, executive vice president of the Conference of State Bank Supervisors told Stateline.org.

"This has been Wall Street's and a handful of big banks' dream to get away from the states."

States are working with Congress to set licensing standards for brokers and already regulate the insurance industry, Stateline.org reported. Both are given federal oversight in the new plans.

Another federal proposal is to increase monitoring of state-chartered banks. Lenders "subject to uneven degrees of state-level oversight," were responsible for more than 50 percent of U.S. loans, the report says.

The proposal also calls for a Mortgage Origination Commission, which would oversee the subprime mortgage market and rate each state's lending systems.

But some believe state regulators can better adapt to local circumstances.

"Crippling state banking charters will weaken banking in America," Chief Executive Officer of the American Bankers Association Edward L. Yingling said in a statement.

"I think the message you're sending to state legislators and state regulators is, 'don't do anything,'" CSBS's Michael Stevens said.