The smallest public companies, including some penny-stock firms, would be granted access to a regulatory shortcut for selling stock under legislation approved Thursday by the House of Representatives.

The House voted 236-178, largely along party lines, on Thursday to approve legislation that would allow microcap companies, which include penny stocks, to tap a method of issuing shares that typically involves less oversight. Regulators warn that microcaps are more susceptible to manipulation by swindlers and company insiders. Republicans who supported the legislation said it would let smaller companies use a fundraising tool that has been restricted to bigger companies.

“Extending these cost-saving provisions to smaller companies that large companies are currently able to enjoy is absolutely critical, and makes a difference for their ability to issue additional offerings, expand their business and create more jobs,” said Rep. Ann Wagner (R., Mo.), who sponsored the legislation. Only one Republican opposed it.

The bill, which doesn’t have a Senate sponsor, would allow microcap companies, including those that don’t meet exchange-listing standards, to offer stock on a rolling basis without having each sale approved by the Securities and Exchange Commission. The SEC defines microcaps as companies whose shares outstanding are valued at less than $300 million.

Microcaps have historically been more vulnerable to fraud because the shares trade infrequently and their price can be moved by company insiders or stock promoters who sell the shares between one another. The SEC warns they are among the riskiest securities that individual investors can buy, and maintains a task force that targets fraudulent offerings by microcap companies.