Earlier this week, members of the U.S. House of Representatives and U.S. Senate reintroduced legislation that would allow regulated financial institutions to work with state-licensed cannabis companies. The Secure and Fair Enforcement (SAFE) Banking Act of 2023 would disallow federal banking authorities from prohibiting, penalizing, or discouraging banks from providing financial services to state-licensed cannabis businesses and their networks of counterparties, advisors, and vendors.
Happy 4/20!
As the nation gets ready to celebrate the unofficial marijuana holiday, 4/20, we thought this was a great time to provide an update on the state of marijuana. 2021 has seen an increase in support for marijuana legalization at the state as well as federal level. Coming off a year of uncertainty with the COVID-19 pandemic, marijuana legalization is poised to make substantial progress. In many states, marijuana businesses were deemed essential businesses during the pandemic, highlighting the overall importance of these establishments.
On Wednesday, the House of Representatives passed the Secure and Fair Enforcement Banking Act of 2019 (“SAFE Banking”) by a vote of 321-103. The final vote, which required 2/3 majority of the House, included 229 Democrats and 91 Republications.
Congressman Ed Perlmutter (D-CO), the bill’s sponsor who first introduced the legislation back in 2013, amended the bill ahead of Wednesday’s floor vote to broaden its GOP appeal.
On Friday, House leadership confirmed that the Secure and Fair Enforcement Banking Act of 2019 (the “SAFE Banking Act”) is scheduled to receive a floor vote this week. This announcement follows a strenuous legislative process to normalize banking for the cannabis industry.