The U.S. House of Representatives has passed a landmark bill aimed at easing restrictions on the cannabis industry. The Safe Act (Secure and Fair Enforcement) Banking Act provides safe haven for financial institutions to work with cannabis operators.
Once pass the Senate and approved by President Biden, the bill would give the cannabis industry access to traditional traditional banking services, which have so far forced to do most of their business with cash. This is the fourth time the House of Representatives has passed the Safe Act. An earlier version of the bill passed the House in 2019, but later died on a Senate committee and did not immediately reach President Trump’s desk.
Under the current bill, safe haven laws and federal unions of banks will protect federal unions from working with cannabis companies that comply with their state laws. This would open the door to conventional capital from financial institutions, which has become unavailable because cannabis still considered illegal at the federal level. Safe law will allow these banks to work with operators in states where cannabis is legal. Cannabis is currently legal for treatment in 36 states, four territories and the District of Columbia.
This would open the door to conventional capital from financial institutions, which has become unavailable because cannabis still considered illegal at the federal level. Safe law will allow these banks to work with operators in states where cannabis is legal. Cannabis is currently legal for treatment in 36 states, four territories and the District of Columbia. Recreational use is legal for adults in 18 states, two territories and DC.
The bill passed the House with broad bipartisan support and approved by a vote of 321-101. Before the bill passed, a letter sent to the House leadership showing support for the law from 20 state administrators and an alliance of bankers and state treasurers from each of the U.S. territories and each state. With support from both sides, advocates and industry experts feel more confident that the bill will pass the Senate and reach President Biden’s desk.
