The banking associations of all 50 U.S. States, as well as other financial, union and insurance organizations are calling on the Senate Committee to pass a marijuana banking law “as soon as possible.”
Before a Senate Banking Committee meeting on financial issues affecting the cannabis industry, which was held on Wednesday, several national and local associations wrote to the panel’s leadership to urge them to take immediate action in order to bring the Secure and Fair Enforcement Banking Act (SAFE) to the floor.
The American Bankers Association and its 50 state affiliates have said that a committee markup should be scheduled “as quickly as possible.”
Other groups have also urged the swift passage of this legislation, including Independent Community Bankers of America (ICBA), Electronic Transactions Association(ETA), International Brotherhood of Teamsters, and a coalition of trade groups in the insurance industry.
The bankers’ letter states that “The SAFE Banking Act” is a bipartisan solution which is urgently needed and broadly supported. It allows banks to manage the proceeds of state-licensed marijuana businesses, as well as the accountants and skilled trades they depend on, along with landlords, lawyers, and other service providers for their legal operations.
It continues: “Federal laws prohibit banks from banking cannabis business, as well these ancillary companies, without fearing federal sanctions.” This industry operates mainly in cash. This causes public safety concerns, and undermines the abilities of cannabis regulators and tax collectors to monitor this industry.
During the Banking Committee’s Thursday hearing, members discussed these issues. also included testimony from by the sponsors of the SAFE Banking act, Senators. Jeff Merkley, Steve Daines, and a union leader, cannabis financial services expert, and legalization opposition were among the witnesses who testified at Thursday’s hearing.
The banking associations stated that “the SAFE Banking Act” is a solution tailored to the needs of this industry, bringing it into the banking system for regulation and providing much needed visibility into their financial activity.
Financial institutions must adhere to strict anti-money-laundering and counter-terrorist funding reporting requirements. They also monitor accounts for suspicious activities. Transparency would be increased by processing transactions via bank accounts rather than cash. This would give regulators and law-enforcement the tools they need to identify and remove bad actors from the market. The law would also increase tax collections in states where cannabis has now become legal.”
The letter states that “the inability of state-licensed marijuana businesses to access safe and regulated banking services is a pressing issue for many of our nation’s communities and banks who serve them.” The SAFE Banking Act is a critical piece of legislation that will address the issue. State-licensed cannabis businesses are currently legal in 38 states, and many more states are considering legalization.
This week, the national ABA sent a separate letter to congressional leaders urging “swift approval” of SAFE Banking Act.
In a email sent to the Senate SAFE Banking Act sponsors, ICBA said that the legislation “would resolve a conflict between federal and state law and address a crucial public safety concern.”
“S. The group stated that “S. It would also reduce the threat to public security posed by [cannabis related businesses] that are cash intensive and effectively shut out of banking.
In a second letter, the general president of Teamsters, who represents “many members” in the marijuana-related industry, stated that the banking legislation would “dramatically improve workplace safety by allowing banks to provide services to legal cannabis-related businesses.”
Sean O’Brien, Teamsters’s Sean O’Brien, said that as Congress attempts to set up the necessary guardrails for cannabis legalization the interests of the workers in the industry must be taken into consideration. The passage of SAFE Banking will help improve the safety of workers and ease operational burdens on employers.
In a letter sent jointly, nine different insurance trade associations stated that their industry is “potentially exposed to liability due to the differences in the legal treatment of cannabis and marijuana products between federal and state laws and regulations at the state-level.”
The groups–the American Land Title Association, American Council of Life Insurers, American Property Casualty Insurance Association, The Council of Insurance Agents & Brokers, Independent Insurance Agents & Brokers of America, National Association of Mutual Insurance Companies, National Association of Professional Insurance Agents, Reinsurance Association of America and Wholesale & Specialty Insurance Association–recommended that the SAFE Banking Act be amended to include provisions from another recently refiled bill to extend protections to insurance companies that work with cannabis businesses.
Sherrod Brown, the chairman of the Banking Committee (D-OH), said that senators would “move swiftly” to pass the SAFE Banking Act. So far, that is exactly what has happened. The hearing was announced just a few days after the bill was reintroduced to both chambers.
Senators from both sides of the aisle are pushing for immediate action to protect banks who work with state-legal marijuana businesses against being penalized federal regulators.
Chuck Schumer, Senate Majority Leader (D-NY), said on Saturday at a marijuana rally in New York City that the bill would be brought to the floor once it cleared committee. He also stressed that it would include expungements provision. has said that Congress must address the harms caused by the drug war.
Schumer, Senate Finance Committee Chair Ron Wyden (D – OH) and Senator Cory Booker (D – NJ) released a statement after the hearing on Thursday that discussed plans for incorporating cannabis expungements text into a bill bipartisan that was re-filed last month.
With Republicans controlling the House, the SAFE Banking Act has been deemed one of the most passable cannabis bills this session. Former Schumer top aide wrote a recent op-ed in Marijuana Moment explaining the new political dynamics that could boost the bill’s chances of passing this year.
The current makeup of Congress has led to some doubts about the feasibility of modest cannabis reforms. Senate Republicans have blocked a motion to move forward a bipartisan measure that would require studies on the medical potential for cannabis to help veterans suffering from chronic pain or PTSD.
In recent years, the SAFE Banking Act was approved in a largely bipartisan manner in some form in the House. It’s been stuck in a rut for years, under both Democratic and Republican leaders.
Schumer stated last month that he is “disappointed,” that the SAFE Plus package, which he worked on in last year, did not advance. He said that lawmakers will “continue to work in a multipartisan way” 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.
Booker acknowledged that the failure to pass a banking solution for the cannabis industry would “literally” mean that hundreds of businesses will go out of business.
Rep. Earl Blumenauer, D-OR, who is sponsoring a House version of SAFE Banking Act said that he believes it’s crucial that advocates and legislators align on any incremental proposal to end the war on drugs, warning that an “all or nothing” mentality.
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In recent weeks, Congress has received numerous cannabis bills in addition to the banking legislation.
Bipartisan members of Congress, for example, recently introduced a bill that would mandate the automatic sealing criminal records for certain federal marijuana convictions.
Rep. Brian Mast, R-FL, introduced legislation last week to protect Second Amendment rights for people who use marijuana legally in states. This would allow them to buy and possess firearms they are currently prohibited to have under federal law.
Last month, Joyce, along with House Minority Leader Hakeem Jeffreys (D-NY), filed a bill to help prepare the federal government to legalize marijuana. The measure directed the Attorney General to create a commission that would study cannabis and make recommendations on how to regulate it in a similar way to alcohol.
Top Wisconsin Senator Talks Marijuana Legalization Fight Amid GOP Opposition
The article 50 State Bankers Associations and Insurance Groups Urge Passage of Marijuana Banking Bill first appeared on Marijuana Moment.
