The Senate Committee on Banking, Housing, and Urban Affairs has passed the Secure And Fair Enforcement Regulation Banking Act (SAFER Banking Act) with a vote of 14-9 on September 27. This bipartisan bill, formally known as S. 2860, aims to offer financial institutions protection when servicing state-sanctioned cannabis businesses and their providers.
Chairman of the Committee, Sen. Sherrod Brown (D-OH), expressed the importance of the bill, stating, "Regardless of how you feel about states’ efforts to legalize marijuana, this bipartisan bill is necessary—it will make it safer for legal cannabis businesses and service providers to operate in their communities and protect their workers."
The committee previously held a hearing in May to discuss the challenges that legal cannabis businesses encounter. Testimonies at the hearing highlighted the dangers posed by the current all-cash operations of many cannabis enterprises. This includes the complications of paying taxes in cash and the heightened risk of violent robberies for workers in these businesses.
One of the key concerns addressed in the legislative process leading up to the vote was deposit account terminations. Senator Jack Reed (D-RI) raised concerns about a section dealing with this issue. However, through bipartisan efforts, the committee was able to find language that satisfied concerns on both sides of the aisle.
The passage of the SAFER Banking Act out of committee is a significant step in resolving financial hurdles for legal cannabis businesses. The bill is now poised for consideration on the Senate floor, which could potentially alleviate many of the challenges faced by legal cannabis businesses across the nation.