Finance Reform Needed for Market Stability: Rep. Frank

Financial reform needs to be approved quickly to ease market uncertainty, Rep. Barney Frank (D-MA), the chairman of the House Financial Services committee, told CNBC Thursday.

"It's important for us to do this as quickly as possible ... I think we can alleviate the fears of the market with this bill," Frank said on a day when the market fell more than 300 points on Europe's debt crisis and Germany's ban on short selling.

"The goal is to get a responsible bill with certainty for the markets, which they are entitled to have, and signed by the president," Frank went on to say.

Frank added he expected President Obama could sign a financial reform bill into law well before July 4.

"I can assure you we'll have a bill by the Fourth of July," said Frank, who will work in conference with the Senate once the bill is passed, which could come as soon as Friday.

The Senate on Thursday voted to end debate on the bill, allowing it to move ahead for a final vote.

Frank refused to state what provisions he would like to see in the Senate bill because doing so would be "gaming the conference (of congressional leaders) before it starts." Frank said he believes, however, that the two versions "are not that far apart."

The right to still engage in derivatives, or risky bets, is one of the final sticking points in the bill, but Frank said, "The ability to hedge against their own commercial risk will be preserved."