US regulators on Wednesday proposed one of the most dramatic rollbacks of bank capital rules since the 2008 financial crisis, which would give a major victory to lenders seeking relief from the new Trump administration.

The proposed change would alter the so-called enhanced supplementary leverage ratio (eSLR), a rule that calls for the largest US banks to hold additional minimum capital based solely on their size.

The largest and most important US lenders, such as JPMorgan Chase (JPM), Bank of America (BAC), Goldman Sachs Group (GS), and Morgan Stanley (MS), currently must keep those eSLR ratios at 5%.

The proposal unveiled by regulators Wednesday would lower that requirement for big bank holding companies by 1.4 percentage points, or approximately $13 billion. The ratio would drop by 10 percentage points for the lenders' bank subsidiaries, according to officials.

The change to this key capital ratio is designed to make it easier for banks to lend more freely and help create an even bigger pool of buyers for US Treasurys. Banks have complained this ratio penalizes them for holding lower-risk assets such as Treasury bonds.

The Federal Reserve governors will vote on the proposal Wednesday, and if it passes the proposal will be put out for public comment. Two other regulatory agencies, FDIC and OCC, also collaborated on the proposal.

"Today’s proposal is an important first step in balancing the stability of the financial system and Treasury market resilience, while preserving safety and soundness," the Fed's new top banking regulator, Michelle Bowman, said in a statement.

Not everyone is on board, however. Two Fed governors — Michael Barr and Adriana Kugler — are objecting to the proposal based on their views that the benefits to easing the capital constraint for the Treasury market doesn't outweigh the financial stability risks.

"I believe this reduction in capital requirements at the bank subsidiaries of the nation’s largest and most complex banking organizations will increase systemic risk in a manner that is not justified," Kugler said.

Barr added in a separate statement that this would reduce bank subsidiary capital by $210 billion for the systemically important institutions.

"Firms will likely use the proposal to distribute capital to shareholders and engage in the highest return activities available to them, rather than to meaningfully increase Treasury intermediation," he said

Treasury Secretary Scott Bessent previously signaled that regulators were close to easing this capital rule as part of a broader deregulatory push by the Trump administration.