Saturday, April 13, 2024

These Congressmen Are Asking For Inclusion Of SAFE Banking In America COMPETES Act

Meager guidance from regulators leaves banks dubious about whether they can safely bank cannabis businesses and other companies that provide them with products and services.

By Nicolás Jose Rodriguez

The U.S. House of Representatives approved the Secure and Fair Enforcement (SAFE) Banking Act by a vote of 321-101 on 4/20. This was the fourth time the House passed a bill that seeks to protect banks servicing state-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 America COMPETES Act, a manufacturing and innovation bill that will be discussed by bicameral negotiators, reported Marijuana Moment.

marijuana banking
Photo by eldadcarin/Getty Images

RELATED: House Approves Marijuana Banking Bill, Attaches It To America COMPETES Act

“It is imperative that the final conference committee report of the America COMPETES Act include the Secure and Fair Enforcement (SAFE) Banking Act in its entirety,” noted the Congressmen.

“As all levels of government continue to advance comprehensive cannabis reforms, addressing the irrational, unfair, and unsafe denial of banking services to state-legal cannabis businesses must be a top priority (…) The SAFE Banking Act is crucial for small operators, especially those owned and staffed by people of color and those who have already been punished during the War on Drugs,” they added.

“Urging my fellow conferees to include the SAFE Banking Act in the final COMPETES conference report. The federal government’s foolish cannabis prohibitions make small, often minority-owned, cannabis businesses vulnerable to crime. The solution: when #SAFEBanking becomes law,” Blumenauer tweeted Wednesday.

“Vulnerable communities cannot wait for the perfect solution for Congress to take substantial steps forward. The SAFE Banking Act is a critical piece of the reform our underserved communities and small businesses need. This legislation will make impactful progress in moving towards a fairer industry, especially for businesses led by lower-income community members and owners of color,” concluded the letter.

Why The Cannabis Industry Needs Congress To Pass the SAFE Banking Act

There are 36 states that have legalized cannabis for medical or adult recreational use. But it is not legal at the federal level. Meager guidance from regulators leaves banks dubious about whether they can safely bank cannabis businesses and other companies that provide them with products and services. This keeps most banks and credit unions from working with the industry.

RELATED: SAFE Act Just Got Re-Added To Defense Bill As Amendment, But Could It Pass On Its Own?

As a result, businesses, workers, and communities in several states must deal in piles of cash because of the conflicts between state and federal law. This creates logistical challenges and, for many, threats to safety. Businesses that house large sums of cash are obviously vulnerable to robberies.

This article originally appeared on Benzinga and ha been reposted with permission.


The 4 Things To Avoid In Your Coffee

For the majority of people, they can't imagine mornings without it.  But here are the 4 things to avoid in your coffee. 


EVALI Could be Caused By Weed With THC-O Acetate

Products with THC-O acetate, which is believed to be three times more potent than delta-9 THC, are being advertised online and sold on the black market. 

Don't Miss Your Weekly Dose of The Fresh Toast.

Stay informed with exclusive news briefs delivered directly to your inbox every Friday.

We respect your privacy. Unsubscribe anytime.