United States: House of Representatives votes on banking reform for cannabis companies

The U.S. House of Representatives approved a bill on Monday bill aimed at protecting banks that provide services to legal cannabis businesses in the states to protect them from potential federal prosecution.

After holding an initial voice vote earlier this afternoon, the members passed the legislation by a final recorded vote of 321-101.

The bill, which was reintroduced last month by Democratic Representative Ed Perlmutter and a long list of bipartisan co-sponsors, was passed through a process known as a suspension of rules, which does not allow for amendments and requires a two-thirds supermajority to pass.

The bill passed by a vote of 321 to 101, including 106 Republicans. Thank you to Reps. Velázquez, Stivers, and Davidson for their partnership, and I look forward to working with Senators Merkley and Daines to get the SAFE Banking Act passed in the Senate and signed into law.

- Ed Perlmutter (@RepPerlmutter) April 19, 2021

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«The fact is that citizens in states and localities across the country are voting to approve some level of cannabis use, and we need these cannabis businesses and employees to have access to checking accounts, payroll accounts, lines of credit, credit cards, and more ,» Perlmutter said on the House floor. «This will improve transparency and accountability, and help law enforcement uncover illegal transactions to prevent tax evasion, money laundering, and other white-collar crimes. But most importantly, it will reduce the risk of violent crime in our communities.»

Legitimate Businesses Excluded from the Banking System

U.S. cannabis companies are largely barred from accessing traditional financial institutions. They operate primarily on a cash basis and are, as a result, targets of robberies.

«Even if you oppose the legalization of cannabis, you should support this bill,» Mr. Perlmutter added. «American voters have spoken and continue to speak—and the fact is, you can’t put the genie back in the bottle. Prohibition is over.»

«At a time when small businesses are just beginning to recover from the economic devastation caused by COVID-19, the federal government should be supporting them, not standing in their way,» said Republican Representative David Joyce.

Just before Monday’s debate, the governors of 20 states, along with banking associations representing every state in the country and a coalition of state treasurers, sent letters to House leadership expressing their support for the reform legislation.

This vote marks the fourth time that the House approve the Secure and Fair Banking Services Act (SAFE). Lawmakers passed it as a standalone bill in 2019, and then twice more as part of legislation to assist victims of the coronavirus. At no point did the measure make headway in the Republican-controlled Senate during the last session.

This time, the Democrats now control both chambers of Congress and the White House. So there is a good chance that the bill will pass the Senate and reach the President's desk.