Will the eighth time be the charm for the SAFE Banking Act?

The US Congress will consider for the eighth time a bill to allow cannabis businesses to use banking services.

A bipartisan group of legislators has 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 the 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 adopted seven times by the House of Representatives.

«For the first time, we have the opportunity to get the SAFE Banking bill through the Senate Banking Committee and voted on by the Senate,» Merkley said in a statement. «Let's make 2023 the year this bill is signed into law to ensure that all legal cannabis businesses have access to the financial services they need to keep their employees, businesses and communities safe.»

Senate Democratic Majority Leader Chuck Schumer expressed his support for the legislation Thursday and said he would ensure it includes criminal justice provisions when it comes up for consideration

«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 bill was reintroduced.

Visit under current federal legislation, Banks and credit unions can face prosecution and federal penalties if they provide services to legal cannabis businesses, as cannabis is still illegal at the federal level.

Without access to financial services, legal cannabis businesses are forced to operate on a cash-only basis, which can encourage theft, money laundering and organized crime.

«This legislation will save lives and livelihoods. It's high time Congress addressed the irrational, unfair and dangerous ban on basic banking services for legal cannabis businesses,» said Blumenauer, founder and co-chair of Congressional Cannabis Caucus.

What's in the SAFE Act?

In broad terms, the bill aims to protect banks that work with state-legal cannabis businesses from penalties imposed by 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
• Take action on a loan 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.