These Congressmen are calling for the inclusion of the SAFE Banking In America COMPETES Act
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The US House of Representatives approved the Secure and Fair Enforcement (SAFE) Banking Act on April 20 by a vote of 321 to 101. This was the fourth time the House of Representatives passed legislation aimed at protecting banks serving federally legal cannabis businesses from federal prosecution.
Reps. Ed Perlmutter (D) and Earl Blumenauer (D) sent a letter to a bicameral conference committee asking for the inclusion of marijuana banking reform in the America COMPETES Act, a manufacturing and innovation statute enacted by bicameral Negotiators will be discussed, Marijuana Moment reported.
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“It is imperative that the final report of the America COMPETES Act Conference Committee include the Secure and Fair Enforcement (SAFE) Banking Act in its entirety,” the congressmen noted.
“As all levels of government continue to push sweeping cannabis reforms, addressing the irrational, unfair and unsafe denial of banking services for federally legal cannabis businesses must be a top priority (…) The SAFE Banking Act is critical for small operators, especially those owned by people of color and occupied by them, and those already punished during the War on Drugs,” they added.
“I urge my conference colleagues to include the SAFE Banking Act in the final report of the COMPETES conference. The federal government’s foolish cannabis prohibitions leave small, often minority-owned cannabis companies vulnerable to crime. The solution: When #SAFEBanking becomes law,” Blumenauer tweeted on Wednesday.
Call on my conference colleagues to include the SAFE Banking Act in the final report of the COMPETES conference. The federal government’s foolish cannabis prohibitions make small cannabis businesses, often minority-owned
prone to crime. The solution: When #SAFEBanking becomes law
— Count Blumenauer (@repblumenauer) April 27, 2022
“Vulnerable communities cannot wait for the perfect resolution for Congress to take significant steps forward. The SAFE Banking Act is a critical part of the reform our underserved communities and small businesses need. This legislation will make effective progress toward a fairer industry, particularly for businesses run by low-income community members and color owners,” the letter concluded.
Why the Cannabis Industry Needs Congress to Pass the SAFE Banking Act
There are 36 states that have legalized cannabis for adult medical or recreational use. But it’s not legal at the federal level. The meager guidance from regulators has banks questioning their ability to safely bank cannabis companies and other businesses that provide them with products and services. This discourages most banks and credit unions from working with the industry.
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As a result, conflicts between state and federal law require businesses, workers and communities in several states to trade in piles of cash. This creates logistical challenges and, for many, a safety hazard. Businesses that house large sums of cash are obviously vulnerable to robberies.
This article originally appeared on Benzinga and was republished with permission.
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