A 3D rendering of a cannabis flag, and behind it the dome of the Capitol.
After a long and arduous wait, it looks like the SAFER Banking Act, the renamed version of the bipartisan law that would allow banks to work with cannabis businesses without penalties, is finally showing some traction after languishing in Congress. Today, the Senate Committee on Banking, Housing and Urban Affairs held a “markup” on the legislation and as expected, the bill passed decisively.
Although members of the House did overwhelmingly vote for the SAFE Banking Act, the bill’s earlier version, several times before, today’s vote marks the first time that Senate members have voted in favor of the measure.
Now it’s off to the Senate and the House for more debate, amendment and votes before hopefully proceeding to President Biden’s desk. If all goes well, the banking ban that has been the scourge of the legal cannabis industry since its inception will be lifted.
To say this could be a milestone victory in the history of the sector is to make a gross understatement. The passage of this bill will ensure that cannabis businesses in legal states will not be forced to operate as cash-only enterprises, making them vulnerable to theft and various criminal activities and that they will be able to open accounts with mainstream banks.
Leaders in the community are rightfully applauding the Senate Committee’s passage of this landmark legislation.
“The SAFER Banking Act brings much-needed clarity and security to financial institutions willing to serve state-sanctioned marijuana businesses,” said Mike Bologna, CEO of Dip Devices, a Denver-based provider of vaporizers. “We are unlocking a world of opportunities by preventing federal banking regulators from taking adverse actions against these institutions. This move will facilitate easier access to capital, encourage more responsible financial practices, and foster innovation within the cannabis industry.”
Aaron Bloom, CEO of DocMJ, a group of certified medical marijuana doctors, agreed.
“The SAFER Banking Act’s passage is a resounding declaration that the time has come for progress and modernization,” he said. “The medical cannabis sector, long hampered by financial hurdles and regulatory ambiguities, is poised for transformative growth. This legislation represents not just a policy shift but a testament to the collective recognition of the industry’s vast potential to enhance public health, spur economic development, and advance scientific understanding.”
Bri Padilla, executive director of The Chamber of Cannabis, a nonprofit organization for Nevada cannabis professionals, also sounded an exultant tone when it comes to the Senate Committee’s passage of the bill. But she noted that more, in the form of rectifying the taxation problem for the industry, needs to be done.
“While this landmark legislation represents a significant step forward in addressing the financial challenges faced by legal cannabis businesses, the industry as we know it is also encumbered with other economic and financial constraints, like the impact 280e has on businesses, which we hope are addressed soon,” she said.