Senate Pressured From All Sides To Pass Cannabis SAFE Banking Act – Will It Happen?

Of Nina Zdinjak

Earlier this month, Colorado Attorney General Philip Weiser (D) and Ohio Attorney General Dave Yost (R) sent a letter to U.S. Senate leadership calling for passage of the cannabis-related SAFE Bank Act.

The Secure and Fair Enforcement (SAFE) Banking Act aims to protect financial institutions wishing to provide their services to federally legal marijuana businesses. Some industry experts believe the bill has a better chance of passing the Senate than the MORE Act, which would remove cannabis from the controlled substances list and allow states to legalize its production and sale free of federal interference.

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Wiser and Yost, who also serve as co-chairs of the National Association of Attorneys General’s (NAAG) federalism committee, said in the letter that “states and the federal government have a strong and shared interest in protecting public safety and addressing the gray market.” fund activities in the regulated banking sector,” Marijuana Moment reported.

“To address these vital goals, we are again calling on the Senate to bring the SAFE Banking Act to the Senate for a vote as soon as possible,” they wrote.

SAFE Banking Sponsor also acts

Following the bipartisan duo’s move, Rep. Ed Perlmutter (D-CO), the bill’s sponsor, also released his letter to Senate leadership urging the chamber to do the same.

Perlmutter suggested that passage of the Secure and Fair Enforcement (SAFE) Banking Act was not only a priority in its own right, but would also serve as a legislative “icebreaker” for broader reform.

In the new letter, the attorneys general emphasized that they are “urging the Senate to move forward with the SAFE Banking Act or similar legislation to create a safe haven for custodians that sell a financial product or a financial product to an affected entity in a state that has implemented legislation Providing financial services and regulations that ensure accountability in the marijuana industry.

RELATED: SAFE Act Just Got Back Into Defense Act As Amendment, But Could It Pass By Itself?

“Our banking system must be flexible enough to meet the needs of businesses in different states, with government input, while protecting the interests of the federal government,” the letter continues. “That includes a banking system for marijuana-related businesses that is both responsive and effective to meet the demands of our economy.”

On Thursday, Weiser took to social media channels to break the news:

The law prohibits banks from providing services to cannabis businesses in states where medical or retail sales are legal. Cash-only operations have security risks. Again, we call on the US Senate to pass the #SAFEBankingAct to give this industry access to the federal banking system. pic.twitter.com/E0RnOoiI8i

— Colorado Attorney General (@COAttnyGeneral) April 21, 2022

Will this effort work?

It remains to be seen, as not many senators have disclosed their stance on this bill, despite publicly opposing the MORE bill.

RELATED: If Senate Democrats’ idea for cannabis reform is a SAFE Banking Act, they should give up now

With 18 states having legal adult-use markets and 37 states plus DC, Puerto Rico, Guam, the Northern Mariana Islands, and the US Virgin Islands having legalized medical marijuana, it’s hard to imagine that more sweeping reform isn’t on the horizon. The question seems to be when, not if.

So Perlmutter might be right that the SAFE Banking Act could serve as an “icebreaker” for federal marijuana reform. We will see.

This article originally appeared on Benzinga and has been republished with permission.