SAFER Banking Act Passes Senate Committee – Cannabis | weed | marijuana

The SAFER Banking Act passed a critical Senate committee hearing by a vote of 14-9. The renamed bipartisan bill would allow banks to work with cannabis companies without federal penalties.

The U.S. cannabis industry has been waiting for SAFER Banking to pass the Senate for a long time. In addition to the 280E tax burden, the lack of access to essential banking services has also unnecessarily impacted the industry.

With the passage of SAFER Banking by the Senate Committee on Banking, Housing and Urban Affairs, this is the first time Senate members have voted in favor of cannabis banking reform. The House of Representatives has already voted for the bill seven times.

But what now? What’s the next step in cannabis banking reform in the United States?

SAFER Banking Act – Steps after Senate Committee Passage

While the passage of the SAFER Banking Act by a Senate committee is undoubtedly good news, it does not mean the end of this long saga.

Once passed by the Senate Committee, the SAFER Banking Act will move to the Senate and House of Representatives for further debate, amendments and votes. Assuming this goes smoothly, the bill will eventually end up on the president’s desk, where everyone will expect him to sign it.

The recent vote in the Senate committee clears the way for the bill to move to the Senate floor. Passage of the law would mean cannabis companies in legal states would no longer have to operate as cash-only businesses. Handling large amounts of cash is inconvenient but also dangerous. Cannabis operators were vulnerable to theft and fraud.

Therefore, industry stakeholders applaud the Senate committee for voting decisively in favor of SAFER Banking.

“[It’s] “A historic step toward finalizing a critical policy building block for the cannabis industry,” said Kaliko Castille, President of the Minority Cannabis Business Association (MCBA).

MCBA worked to ensure that the House and Senate not only passed the SAFER Banking Act, but also included provisions to support minority business owners, who were the main targets of the drug war.

“The Committee’s approval of the SAFER Banking Act provides hope for thousands of compliant, taxpaying businesses desperate to gain access to the essential financial services that other businesses take for granted,” said Aaron Smith, CEO of the National Cannabis Industry Association. “This unique bipartisan legislation has the potential to save lives and help small businesses; It’s time for Congress to get it to the President’s desk without further delay.”

What next?

Senate committee passage of the SAFER Banking Act may have been influenced by recent cannabis news from Washington, DC

Earlier this month, the Department of Health and Human Services formally recommended that the DEA move cannabis from Schedule I to Schedule III of the federal Controlled Substances Act.

This change would have no impact on banking, but would relieve operators of the burdensome 280E tax. The possible debt restructuring gave pot stocks a boost. It may also have lit a fire under the asses of American senators.

SAFER Banking would provide the U.S. cannabis industry with greater access to financial services, including depository services, electronic funds transfers, lending and other access to capital.

Even Canadian cannabis companies stand to benefit from banking reform in the US. Currently, Canadian banks are pursuing the same drug war mentality, even though the herb has legal status above the 49th. Canada’s oligarch banks have a significant presence in the American economy that they do not want to jeopardize.

Advocates are confident the Senate will eventually pass the SAFER Banking Act because it enjoys bipartisan support among Republicans and Democrats.

In the United States, cannabis is legal in 23 states, the District of Columbia and two territories. Every state has a medical cannabis program except Idaho, Wyoming, Kansas and South Carolina.

Three out of four Americans live in a state where cannabis is legal. At this point, federal legalization of cannabis appears to be less a question of if and more a question of when.