A bipartisan bill that would allow cannabis businesses access to banking services could see action in the Senate within the next six weeks, according to lawmakers.
The Secure and Fair Enforcement (SAFE) Banking Act has been a priority for advocates seeking to bring the marijuana industry into the financial mainstream. Currently, most banks will not work with cannabis companies due to federal prohibition.
Senate Banking Committee Chairman Sherrod Brown (D-OH) said he has discussed plans to move the bill forward soon with Majority Leader Chuck Schumer (D-NY). Schumer has also signaled marijuana banking reform is a priority issue requiring bipartisan cooperation.
“We want to get SAFE Banking. We want to do all that in the next six weeks,” Brown told reporters this week. The bill currently has 42 cosponsors split between Republicans and Democrats.
The SAFE Banking Act would protect financial institutions from federal penalties for working with state-legal marijuana businesses. Supporters say it would provide critical access to essential banking services that cannabis companies currently lack.
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However, some Senate Democrats want to amend Section 10 of the bill, believing it could undermine banking regulations. Republicans have resisted those changes, and it’s unclear if a compromise can be reached.
The lead GOP cosponsor, Senator Steve Daines (R-MT), believes the votes are already lined up to pass the current version of SAFE Banking if brought to the floor.
The bill’s progress has major implications for small cannabis businesses that have struggled without proper banking access. Industry leaders say the measure is urgently needed and could determine whether many companies survive or not.
Proper banking would help small marijuana firms process transactions, obtain financing, pay taxes, and gain legitimacy. This could level the playing field against larger cannabis corporations.
While the path forward contains hurdles, the increasing bipartisan momentum behind marijuana banking reform suggests historic progress could be on the horizon for the growing industry after years of being denied equal services.