Tag: SAFE Banking Act

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US House Members Approve SAFE Banking Act

Written by Johnny Green on April 21, 2021. Posted in Politics.

Once again The SAFE Banking Act received a vote in the United States House of Representatives, and once again it yielded bipartisan support and passed.

Access to the United States’ banking system by the cannabis industry is not as big of a problem as it once was, however, it’s still a major issue that countless state-legal cannabis companies have to deal with.

Below is more information about yesterday’s historic vote via a press release sent to the International Cannabis Business Conference from our friends at NORML:

Members of the House of Representatives voted today in favor of a stand-alone piece of legislation, The SAFE Banking Act, to remedy the ongoing inconsistencies between state and federal marijuana laws.

In a vote of 321-101, House members approved HR 1996, The SAFE Banking Act, which would create a legal safe harbor for financial institutions to engage in business relationships with state-licensed and regulated cannabis companies.

“For the first time since Joe Biden assumed the presidency, a supermajority of the House has voted affirmatively to recognize that the legalization and regulation of marijuana is a superior public policy to prohibition and criminalization,” said NORML Political Director Justin Strekal. “However, the SAFE Banking Act is only a first step at making sure that these state-legal markets operate safely and efficiently. The sad reality is that those who own or patronize the unbanked businesses are themselves criminals in the eyes of the federal government, which can only be addressed by removing marijuana from the list of controlled substances.”

To date, over 40 percent of Americans reside in a jurisdiction where transactions involving the sale of cannabis have been approved under state law, and the majority of Americans live in a state where medical cannabis sales are permitted.

Why NORML Supported Passage of HR 1996: The Safe Banking Act:

Federal law currently defines all marijuana-related endeavors as criminal enterprises, including those commercial activities that are licensed and legally regulated under state laws. Therefore, virtually no state-licensed cannabis businesses can legally obtain a bank account, process credit cards, or provide loans to small businesses and entrepreneurs.

In this environment, the rapidly growing multi-billion dollar cannabis industry must operate largely on a cash-only basis, which makes businesses more susceptible to theft and more difficult to audit. This ongoing federal prohibition also places the safety and welfare of these businesses’ customers at risk, as they must carry significant amounts of cash on their persons in order to make legal purchases at retail facilities. For these reasons, NORML has long advocated that federal lawmakers vote “yes” on The SAFE Banking Act.

A version of this bill first passed the House of Representatives on September 25th, 2019. Subsequently, it was included multiple times in various COVID relief packages that the House approved in the previous Congress. Ultimately, however, the language was not included in any of the enacted COVID stimulus bills.

What’s Next?

Commenting on the next steps, NORML Political Director Justin Strekal said: “Today’s vote is another important mile marker on the road to repealing federal prohibition, yet much more action must still be taken by lawmakers in both chambers. In the Senate, we are still waiting on a comprehensive proposal promised by Senate Majority Leader Schumer and Senators Cory Booker and Ron Wyden and in the House, we anticipate additional efforts to move forward and pass comprehensive reform legislation like The MORE Act — which was approved in the previous Congress — in order to ultimately comport federal law with the new political and cultural realities surrounding marijuana.”

For reference:

In the previous session of Congress, the vote on SAFE Banking was 321 to 103 in favor of HR 1595. Two-hundred and twenty-nine Democrats and 91 Republicans cast ‘yes’ votes in favor of the measure.

This year, for HR 1996, amongst the Democrats, the vote was 215-0, and among the Republicans, the vote 106-101.

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The SAFE Banking Act Would Be A Game-Changer For Banking Technology

Written by Johnny Green on October 28, 2019. Posted in Business, Politics.

In order for the U.S. cannabis industry to reach its full potential, it needs access to the nation’s banking system at the same level that other legal industries have. Because the international banking system is so closely tied to the U.S. banking system, cannabis industries in other nations need banking reform to occur in the U.S. just as badly as the U.S. cannabis industry.

Right now a bill is being considered by the United States Senate that would provide comprehensive banking reform for the emerging cannabis industry. The Secure and Fair Enforcement (SAFE) Banking Act of 2019 has already passed in the United States House. It is expected that President Trump would sign the legislation if it made it to his desk.

If the SAFE Banking Act passes and becomes law, it will do more than just allow cannabis companies to make deposits into checking accounts. The reform measure would be a game-changer for technologies that are geared towards supporting the banking industry.

The U.S. House Passed A Cannabis Banking Bill – What Happens Next?

Written by Johnny Green on September 28, 2019. Posted in Business, Politics.

Today was a truly historic day in the United States House of Representatives. The full chamber passed, for the first time ever, a stand-alone cannabis reform bill. The bill is the SAFE Banking Act (H.R. 1595). In its current form the bill would:

Prevent federal banking regulators from punishing banks for working with state-legal cannabis and hemp-related businesses
Protect ancillary cannabis industry businesses from being charged with certain financial crimes related to cannabis’ Schedule I federal status
Require the Financial Institution Examination Council to develop guidance to help educate credit unions and banks on how to work with state-legal cannabis companies
Allow traditional lending from financial service providers to small businesses, and require regular reporting on cannabis industry loan practices involving women and people of color

The bill passed with bipartisan support, with the measure passing by a vote of 321-103 and receiving ‘yea’ votes from nearly half of voting Republicans in the chamber. The National Cannabis Industry Association has been working on educating lawmakers about the need for this legislation for a long time and deserves an enormous hat tip for its efforts.

“Having worked alongside Congressional leaders to resolve the cannabis industry’s banking access issues for over six years, it’s incredibly gratifying to see this strong bipartisan showing of support in today’s House vote,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “We owe a great debt of gratitude to the bill sponsors, who have been working with us to move this issue forward long before anyone else thought it was worth the effort.”

“Now, it’s time for the Senate to take swift action to approve the SAFE Banking Act so that this commonsense legislation can make its way to the President’s desk,” continued Smith. “This bipartisan legislation is vital to protecting public safety, fostering transparency, and leveling the playing field for small businesses in the growing number of states with successful cannabis programs.”

The historic nature of today’s vote cannot be understated. This is the first time that a full chamber of Congress has passed a bill that contained solely cannabis reform provisions in it, as pointed out by NORML Political Director Justin Strekal.

“For the first time ever, a supermajority of the House voted affirmatively to recognize that the legalization and regulation of marijuana is a superior public policy to prohibition and criminalization,” Strekal stated in a press release.

The logical question is now being asked, ‘what happens next?’ The U.S. Senate already has a cannabis banking bill introduced (S. 1200) in its chamber. The bill was introduced in April by Senators Cory Gardner (R-CO) and Jeff Merkley (D-OR). Banking Committee Chairman Mike Crapo (R-ID) has stated recently that cannabis banking legislation is being seriously considered in his chamber. Will it get a vote?

Larger political forces are at play, and that has resulted in a blockade of sorts for legislation coming from the House to the Senate. The provisions of this particular legislation could actually get fair consideration in the Senate now that the House vote has put the spotlight completely on the Senate chamber.

The bill received bipartisan support in the House, and a significant amount of it. Cannabis banking reform in the Senate also has bipartisan support. This bill would benefit the hemp industry, and that is a policy area that Senator Mitch McConnell supports, which is significant.

Will it all be enough to push the bill over the top? We have no choice but to wait and see. In the meantime, all cannabis industry eyes will be on the Senate. Step up and do your part and urge your Senators to get on board!

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Report: U.S. House To Vote On Cannabis Banking Bill This Week

Written by Johnny Green on September 23, 2019. Posted in Politics.

The SAFE Banking Act would reform federal law to allow for better access to the nation’s financial system for cannabis companies.

Many cannabis companies have had their assets frozen and/or accounts closed simply because they were involved in the cannabis industry. Other cannabis companies were unable to open an account in the first place due to the policies of many financial institutions.

Local credit unions have been increasingly filling the void in the United States, however, the situation is still far from optimal. A reported vote in the United States House of Representatives for the SAFE Banking Act could change that. Per NORML:

Majority Leader Hoyer on Friday announced that members of the House are anticipated to hold a floor vote next week on The SAFE Banking Act (HR1595), which explicitly permits banks and other financial institutions to work directly with state-legal marijuana businesses.

“The upcoming banking vote is an important first step by Congress, but in no way should it be the last,” said NORML Political Director Justin Strekal. “Much more action will still need to be taken by lawmakers, in particular efforts to move forward and pass comprehensive reform legislation like The MORE Act — which is sponsored by the Chair of the House Judiciary — in order to ultimately comport federal law with the new political and cultural realities surrounding marijuana.”

Only time will tell if the vote actually occurs. The bill is co-sponsored by over 1/3rd of the entire chamber, so if the bill actually does get a vote its chances of passing are strong.

It’s unclear what appetite the United States Senate will have for the bill. Senate Majority Leader Mitch McConnell has famously opposed virtually every bill that has come out of the House. Will this bill be different?

The first step to finding out will be if/when the House votes to pass the SAFE Act. All eyes from the cannabis community will be on the House this week to see if the historic vote takes place.