The US Congress will consider for the eighth time a bill to allow cannabis companies to use banking services.
A group of bipartisan lawmakers reintroduced the Secure and Fair Enforcement (SAFE) Banking Act in the House of Representatives and the Senate last Wednesday, after its previous blockages in the, the last being last year.
The bill, which has been amended since last session, was introduced by Democratic Senators Jeff Merkley and Earl Blumenauer, and Republicans Steve Daines and Dave Joyce.
The bill, which has always enjoyed strong bipartisan support, has already been passed seven times by the House of Representatives.
“For the first time, we have the opportunity to push the SAFE Banking Bill through the Senate Banking Committee and have it voted on by the Senate,” Merkley said in a statement. “Let’s make 2023 the year this bill is signed to ensure that all legal cannabis businesses have access to the financial services they need to keep their employees, businesses and communities safe. »
Democratic Senate Majority Leader Chuck Schumer voiced support for the legislation on Thursday and said he would ensure it included criminal justice provisions when considered
“The SAFE Banking Act will provide urgent relief to cannabis businesses of all sizes and serve as a springboard for broader reforms,” said Matt Darin, CEO of cannabis operator Curaleaf, in a statement after the proposed reintroduction of banking. law.
Under current federal law, banks and credit unions face federal prosecution and penalties if they provide services to legal cannabis businesses, as cannabis is still federally illegal.
Without access to financial services, legal cannabis businesses are forced to operate in cash only, which can fuel theft, money laundering and organized crime.
“This legislation will save lives and livelihoods. It is high time for Congress to address the irrational, unjust, and dangerous ban on basic banking services for legal cannabis businesses,” said Mr. Blumenauer, Founder and Co-Chair of the Congressional Cannabis Caucus.
What’s in the SAFE Act?
Broadly, the bill seeks to protect banks that work with state-legal cannabis businesses from penalties from federal regulators. Under the SAFE Banking Act, federal regulators will be barred from taking several punitive actions against banks:
- Prohibit, penalize or discourage a bank from providing financial services to legal cannabis businesses
- Terminate or limit a bank’s federal deposit insurance if the bank provides these services
- Recommend or encourage a bank to stop providing banking services to cannabis businesses
- Taking action on a loan made to a cannabis business owner or operator
The legislation also creates a safe harbor against criminal prosecution, liability and asset forfeiture for banks, their officers or employees.
