Banking reform bill for cannabis companies (SAFER) passes key vote to move forward in Senate

Members of the Senate Banking Committee have approved the SAFER Banking Act, paving the way for its final vote in the Senate, which would be a major breakthrough for the cannabis industry in the US.
The recently updated legislation - formerly known as the SAFE Banking Act - would transform the U.S. cannabis industry.

While the bill is under discussion for ten years, It was then attached to the National Defense Authorization Act (NDAA) and passed as an emergency bill during the COVID-19 pandemic, before being withdrawn and never passing the Senate.

The long-awaited legislation would give cannabis businesses access to essential banking services, preventing banking regulators from penalizing banks that provide services to cannabis businesses, preventing cannabis-related business revenues from being subject to money-laundering laws, and allowing cannabis businesses to obtain loans and financial services.

It would also enable companies to nno longer have to operate solely on cash, This is a problem that has plagued the sector for years, and which has seen some companies subjected to armed robbery.

Last week, the SAFER Act underwent a number of important amendments before being submitted to the U.S. Senate Banking, Housing and Urban Affairs Committee.

The bill passed by a vote of 14 to 9, and the bipartisan support it enjoys sets the stage for its vote in the Senate, which for the first time will vote on a piece of cannabis legislation.

In a statement to members, cannabis reform group NORML commented, «Similar bills have already passed the House of Representatives seven times, but this is the first time the Senate has passed legislation to protect cannabis consumers and licensed suppliers from the threat of violent robbery, while providing access to the financial services small cannabis companies desperately need to survive and thrive in the face of unregulated operators and massive corporate interests.

Rob Nichols, president and CEO of the American Banking Association, said, «We commend the Senate Banking Committee for advancing the SAFER Banking Act and thank Senators Brown, Merkley, Daines, Schumer, Sinema, Lummis and Cramer, as well as the other co-sponsors, for their leadership.»

«This urgently needed bipartisan legislation will resolve the current conflict between state and federal laws so banks can serve state-licensed cannabis and cannabis-related businesses, while improving public safety, tax collection and financial transparency. The status quo is simply untenable for consumers, small businesses and banks operating in states where cannabis is legal.»

«Based on today's bipartisan vote, we urge the full Senate to quickly consider this bill.»

After passing the Senate committee, the SAFER banking law will be submitted to the Senate and House of Representatives for further debate, amendments and votes.