After a pushback from comments made by a Senate Committee hearing earlier this month, where a compliance official suggested a “pause”, a marijuana financial services firm has revised its testimonies on a federal cannabis banking bill.
Advocates and stakeholders seemed shocked by Dama Financial’s suggestion, which appeared to undermine efforts made to present a united front in support of the Secure and Fair Enforcement Banking Act (SAFE).
After the Senate Banking Committee’s hearing, Dama CEO Patrick O’Boyle stated that they “regret[ed] that our testimony didn’t highlight the bill’s virtues and the urgency for its passage” and that the company would be working with stakeholders in order to revise the comments that were made to the committee.
O’Boyle stated, “We appreciate your partnership and your understanding.” Rest assured that we are committed to supporting your business, your growth and your success as well the success of cannabis industry.
Dama updated its testimony on Wednesday and sent it to the Banking Committee. The company says it “took a myopic approach in drafting our testimony about banking compliance, rather than balancing that testimony with reasons why the benefits from the legislation outweighs the desire for further enhancements”, and has offered new comments.
The federal prohibition status quo has made it impossible for the cannabis industry to access traditional financial services, resulting in “many businesses operating with cash as a primary business method, which not only is an inefficient practice but also a danger to our businesses and communities”.
O’Boyle stated that “it is an unnecessary risk which welcomes theft, burglaries, robberies and sadly even deaths.” The SAFE Banking Act will bring together federal and state laws by preventing federal agencies to take action against entities who provide financial services for licensed operators and cannabis related businesses.
“The American public deserves a smart economic strategy that clarifies the liability of depository institutions providing financial services to cannabis operators and cannabis related businesses who are legally licensed. Although there are other banking and compliance enhancements that need to be addressed, Dama believes the SAFE Banking Act (S. 1323t) should not delay the passage of this act as it is a step in improving the access to financial products and services for the cannabis industry.
It is important to note that the cannabis industry is growing in the U.S. and developing faster as more states transition from medical to full legalization in a shorter period of time. Now is not the right time to stunt financial infrastructure to support this growth. The Senate, by supporting the SAFE Banking Act and allowing financial institutions to work with cannabis companies, would not only protect Americans from cash on the street, but also support smart economic policies which greatly contribute to the financial health of our country.
Kim Rivers of the multistate marijuana company Trulieve had contacted Dama after the initial testimony. She received assurances from Dama that they would correct the record regarding their position.
I just spoke with the CEO of at DamaFinancial. I hope they will issue a statement to the committee making it clear they support SAFE as it is in its current format and that it provides a working structure for the industry. I appreciate the opportunity to connect with you and…
Kim Rivers (@rivers_kim 15 May 2023
She thanked the company for their follow-through on Wednesday, but some observers such as lobbyist Don Murphy from the Marijuana Leadership Campaign believe “any damage has been done” after the in person testimony.
Thank you for your efforts, but the damage has been done. It’s like a front-page error being corrected on the back. It looks like more of a crisis management case than an actual attempt to correct the record. This is a missed chance. SMH.
Don Murphy (@donmurphy12a 24 May 2023 HTML0)
The next step in the SAFE Banking Act will be a committee review, which Senate majority leader Chuck Schumer (DNY) has said that he hopes to happen “in a near future.”
It is planned to pass a clean, standalone bill from committee and then offer amendments in the house. Schumer and his colleagues have stressed that the legislation needs to be revised in order to include provisions for “criminal justice”, such as record expungements.
The bill may also be amended to address concerns raised by a Democratic Senator and key federal officials, as well as consumer advocacy groups. These groups said that a particular provision in the bill might limit the ability of regulators, to take action, against those who exploit banking services.
Last week, a coalition of groups sent a separate letter to the committee leadership calling for a broadening of the bill’s protections in order to allow cannabis industry access to U.S. major stock exchanges. This request has been met with some criticism by other advocates who claim that it would be inappropriate to help businesses at a time when efforts to legalize pot are stalling in Congress.
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Jacky Rosen, a Nevada senator, said recently that the SAFE Banking Act should be passed with an amendment to allow cannabis businesses access to federal Small Business Administration services (SBA).
Schumer stated last month that he is “disappointed,” that the so-called SAFE Plus cannabis reform package did not advance last year. He added that “we were close,” but that “we ran into resistance in the last moment.” He also said that lawmakers will “continue to work in a bipartisan manner” in order to accomplish the task.
In the first months of the new Congress, the majority leader has met with Democratic members and Republican members to discuss marijuana reform proposals which might be able to garner bipartisan support this year.
Sen. Cory Booker, D-NJ, said that lawmakers are trying to “resurrect the cannabis reform package. He acknowledged that the failure to progress a banking solution for the industry would “literally mean that hundreds of companies go out of business.”
Rep. Earl Blumenauer, D-OR, who is the lead sponsor of the House’s version of the SAFE Banking Act said that it was important for advocates and legislators to align on any incremental proposal to end the war on drugs, cautioning against a “all or nothing” mentality.
The American Bankers Association (ABA), which also renewed its call to pass the legislation, did the same. All 50 state chapters of the ABA did the same. Insurance and union organizations also wrote to Congress.
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The post Marijuana Finance Company Updates Their Testimony on Banking Bill to Urge Passage After Criticism from Stakeholders first appeared on Marijuana Moment.
