“This morning, as we speak, the Banking Committee is holding a markup on our bipartisan SAFER Banking Act,” Schumer said . “Today’s markup of SAFER Banking represents a huge step forward in the Senate’s effort to help cannabis businesses operate more efficiently, more safely, more transparently. … It's been a goal of mine since we started this session of the Senate to move forward on this legislation.”
Schumer, who sponsors the legislation, said that once the bill was reported out of committee, he planned to “bring SAFER Banking to the floor for a vote as quickly as possible.”
“So again, I thank my colleagues on both sides for their work on this legislation, which has been an effort years, years in the making,” he said. “And once it’s reported out of committee, I will put SAFER Banking on the floor for a vote very soon.”
This marks the first time that cannabis banking reform has gained meaningful traction in the Senate. Related reform, the SAFE Banking Act, has passed seven times in the U.S. House since 2019. As Cannabis Business Times previously reported , the word “regulation” was added to the title of the revised legislation, which was introduced Sept. 20.
The legislation’s advancement in the Senate caused quite a stir in the industry Wednesday. Here, CBT has compiled a roundup of stakeholders’ comments and reactions to the committee’s passage of the SAFER Banking Act.
“Today’s action is not only historic but also is at a time where it could not be more urgently needed to help the regulated cannabis industry in 38 states be able to compete against the growing threat of an illicit market that greatly risks public safety and consumer safety. We are heartened to see broad bipartisan support move this bill out of committee, and we look forward to momentum and support continuing to build as it moves to the Senate floor and ultimately to the House, which has previously overwhelmingly passed the bill—at long last getting this critical measure signed into law this Congress.” - Saphira Galoob, Executive Director, National Cannabis Roundtable
“We thank the committee for moving forward on this important legislation to bring consistency and common sense to the intersection of banking regulation and legal cannabis businesses. This bill will allow credit unions to lawfully serve these businesses and addresses the serious public safety issue of forcing these businesses to deal in only cash. A bipartisan group of senators—including Senate Majority Leader Chuck Schumer, D-N.Y.—introduced the bill last week. It is an updated version of the CUNA and League-supported SAFE Banking Act, which was introduced in both chambers earlier this year, and passed the House seven times in previous Congresses.” - Jason Stverak, Deputy Chief Advocacy Officer for Federal Government Affairs, Credit Union National Association (CUNA)
“Today’s vote by the Senate Banking Committee marks the first time that cannabis banking reform has been passed out of a Senate committee. This marks a critical step toward securing banking access for the nation’s $30-plus billion licensed cannabis industry, which supports over 400,000 full-time jobs across the country. The House has previously passed the SAFE Banking Act seven times, but the Senate has stopped short in the past. The primary obstacle was that SAFE had not advanced through regular order. With today’s vote, that obstacle is history. The updated SAFER Banking Act is now in a strong position to be passed on the Senate floor, either as a standalone bill or part of a larger package. This is where our focus will remain. Once passed in the Senate, SAFER will be taken up in the House, where cannabis banking reform continues to enjoy broad, bipartisan support. We anticipate ongoing conversations between the parties and chambers about Section 10, and we are optimistic that negotiators will work through any differences and pass the bill. We deeply appreciate the hard work by the Senate Banking Committee and SAFER's bipartisan sponsors to advance this vital legislation toward the finish line in this Congress.” - David Culver, SVP of Public Affairs, US Cannabis Council (USCC)
“As Congress works to establish the necessary guardrails around cannabis legalization, the labor and safety interests of workers must be paramount. Passing SAFER banking is a necessary part of this process and can help improve working conditions while easing operational burdens for employers across the country. This is a perfect example of the Teamsters working with responsible, ethical employers in the cannabis industry on mutually beneficial public policy,” - Peter Finn, Western Region International Vice President & Director, Food Processing Division, Teamsters
“Everyone in the cannabis industry—workers, consumers and business—supports the SAFER Banking Act. It puts rank-and-file cannabis workers one step closer to securing sustainable, middle-class union jobs. Congress needs to act on this commonsense bipartisan legislation as quickly as possible.” - Sean O’Brien, General President, Teamsters
“The passage of SAFER Banking is a long-awaited first step towards the economic legitimacy of the cannabis industry. It is our hope that this movement will continue to push the needle forward toward evolving federal policy, such as eliminating 280E and opening capital markets to the cannabis industry. With that being said, today we celebrate a win in an ongoing fight, and we’re optimistic that the passing of this crucial legislation will contribute significant growth to the overall cannabis industry at a time when it is most needed.” - Wendy Bronfein, Co-Founder & Director of Public Policy, Curio Wellness
“Trulieve applauds Chairman [Sherrod] Brown and Sen. [Steve] Daines for taking this historic step in moving SAFER Banking out of the Senate Banking Committee. At this juncture, we believe this piece of legislation is ready for prime time after having had seven votes out of the House in the past. Realizing this first vote out of the Senate signals strong bipartisan support from both chambers of Congress, we look forward to finally seeing SAFER Banking move across the finish line and, hopefully soon, to the president’s desk for signature.” - Kim Rivers, CEO, Trulieve
"In an industry where, on average, 80% of transactions are conducted in cash, which creates security risks and financial disadvantages, this landmark decision is a beacon of hope for cannabis businesses striving to thrive in a fiercely competitive and nascent industry. At Treez, we have dedicated ourselves to empowering our cannabis retail partners with easier access to essential financial services, the very services that this historic legislation promises to unlock. As we eagerly await the impending Senate vote, our hope is that it garners the support needed to pass on the Senate floor, ushering in a wave of much-needed relief for our industry." - John Yang, Founder & CEO, Treez
“Today’s move by the Senate Banking Committee to advance the SAFER Banking Act is another significant catalyst to normalize and empower the cannabis industry, one of the nation’s fastest growing, to allow it to reach its fullest potential. Following the recent rescheduling recommendation by the Department of Health and Human Services and the SAFER Act advancement, the cannabis industry is finally being appropriately recognized by the federal government as the legitimate business it is, reversing decades of failed policy and inaction that have hindered its growth despite its proven record as an economic and employment engine that benefits countless Americans and communities across the country. Currently, 37 states and Washington, D.C., have some form of legalized cannabis, and Americans across the political spectrum increasingly support legalization. The progression of the SAFER Act is a long overdue step forward by our elected officials to recognize the countless benefits this incredible plant provides and finally take decisive action to support the will of their constituents to further the development of this growing industry, while also creating opportunity for increased investments, job creation and revenue. We applaud the decisive action by the Senate to advance the SAFER Banking Act and look forward to advocating for continued progress with leaders in Washington regarding additional cannabis reforms needed to unlock the full potential of America’s cannabis industry.” - George Archos, CEO, Verano
“The committee’s approval of the SAFER Banking Act … gives hope to thousands of compliant, tax-paying businesses desperately trying to access the basic financial services other businesses take for granted. This uniquely bipartisan legislation has the potential to save lives and help small businesses; it’s time for Congress to get it to the president’s desk without further delay.” - Aaron Smith, CEO, National Cannabis Industry Association (NCIA)
“We applaud the Senate Committee on Banking, Housing and Urban Affairs on their efforts to drive incremental change forward. However, make no mistake, this measure does not solve all of the banking challenges faced by the cannabis industry. Since cannabis is still listed as a Schedule I drug under the Controlled Substance Act (CSA), the current guidelines and regulations will require that banks and credit unions continue to fulfill BSA obligations outlined in the 2014 FinCEN guidance, which can be quite extensive. Financial institutions will be required to file regular reports, requiring substantial resources to ensure compliance from financial and small businesses and demanding precious operational resources. Cannabis’s real golden goose is rescheduling. Unless certain obligations are substantially changed, the cannabis industry will remain both cash-intensive at the same time it is forced to fight an active, illicit market operating in plain sight. This is simply unacceptable and more must be done to equal the playing field for these small business owners.” - Sundie Seefried, CEO, Safe Harbor Financial
“This morning’s successful markup of the SAFE(R) Banking Act is a historic step towards final passage of a critical policy building block for the cannabis industry and we are thankful to the committee for including MCBA’s suggestions in the latest version of this bill. After years of dedicated advocacy work, our efforts have culminated in the inclusion of Community Development Financial Institutions (CDFIs) in the SAFE[R] Banking Act. CDFIs, with their record of lending to minority communities, can play a vital role in fostering diversity and equity in the cannabis industry by aiding minority entrepreneurs who have long struggled to secure capital. MCBA remains committed to ensuring the final version of the SAFE(R) Banking Act not only opens the doors for legal cannabis banking but also focuses on positively impacting those who have been disproportionately affected by cannabis prohibition. We look forward to seeing [the Harnessing Opportunities by Pursuing Expungement] HOPE [Act] added on the floor and seeing this bill eventually signed by President Biden so that we can move on to a comprehensive package that finally ends a decades long war on black and brown communities that is still actively locking people up for a plant.” - Kaliko Castille, President, Minority Cannabis Business Association (MCBA)
“Although [the Drug Policy Alliance] DPA acknowledges minor and technical changes in the SAFER Banking Act that reflect our ongoing efforts to ensure marijuana banking legislation promotes fairness for small and minority businesses, we continue to take a position of neutrality on this bill. This is because SAFER fails to explicitly ensure that federal banking regulators will issue guidance that is fair for individuals with past marijuana criminal records. By failing to address the “red flag” issue, people with previous marijuana convictions may continue to be denied access to banking services. Despite leaving this issue unaddressed in the bill, congressional leaders can still urge the Treasury Department to fix this problem when it updates its guidance for banks. We look forward to continuing our work with Congress and the administration to ensure fairness and equity remain at the center of federal marijuana policy reform.” - Maritza Perez Medina, Director of the Office of Federal Affairs, Drug Policy Alliance
“The past opposition to the SAFE Act banking bill has been the perfect example [of] ‘getting in the way of the good’ (or useful). The last time the bill was supposed to come up for a vote in the Senate, Sen. [Cory] Booker halted consideration because he insisted on completely decriminalizing cannabis (rather than authorizing banks to provide banking services to cannabis companies). The issue of cannabis and the SAFE Act appears to be one of the few policy questions that crosses the aisles of Congress, with both proponents and opponents coming from both the left and the right. Most law enforcement entities would prefer having cannabis companies conduct their operations within the banking system, because of the resulting transparency that would afford enforcement agencies the ability to better monitor cannabis for legal and illegal transactions. Due to the utter chaos in the House Republican majority, it is quite impossible to predict how the SAFE Act would be treated should it come to the floor for a separate vote. The more probable opportunity would be to attach it to an appropriations bill such as the defense department legislation as part of a Conference Committee decision.” - Joseph Lynyak, Partner, Dorsey & Whitney
“We applaud the Senate Banking Committee for advancing the SAFER Banking Act. Ensuring state-legal cannabis businesses have adequate access to banking and other financial services is critical to protecting public safety and the safety of cannabis businesses and their employees. It would also help smaller businesses and social equity operators, who are more severely impacted by the lack of loans, banking and other financial products. Legal cannabis businesses need banking and financial services just as much as other legal businesses, and this bill would be a big step toward achieving parity. We hope Congress will work quickly to get this legislation approved and over to the president for his signature.” - Chuck Smith, President of the Board of Directors, Colorado Leads
“We are thrilled that the Senate Banking Committee has approved the SAFE[R] Banking Bill and are thankful to all the sponsors who put in many hours to get us here. SAFE[R] will provide urgently needed relief to cannabis businesses of all sizes, as well as for employees who work in the industry and cannot access traditional banking services for their families. We hope to see this monumental news serve as a steppingstone to broader reforms down the line. We have seen this positive first step towards banking reform seven times before, and each time we have fallen short of success. We urge our congresspersons on both sides of the aisle to listen to the voices of their constituents and enact this critical legislation.” - Boris Jordan, Founder & Chairman, Curaleaf
“Today’s vote is a key step forward for the cannabis industry at large and signals a long-awaited government willingness to tackle the complex web of banking issues that have hampered the market since its beginning. With the industry poised to reach $34 billion by the end of this year, the implications of more accessible financial services will be transformative and will attract further investment and innovation, especially when considering the HHS’s recent recommendation to reclassify cannabis as a Schedule III substance. This dual development could free up essential capital for businesses by not only allowing for a safer banking environment but also potentially lifting the burdensome restrictions of 280E. Dama will continue to support financial institutions and CRBs to ensure compliance and adherence to all regulations.” - Patrick O’Boyle, CEO, Dama Financial
“The legal cannabis industry is back to making history this week with the Senate hearing and vote on the SAFER Banking Act. It is always a proud moment as an American to see democracy at work where both parties come together and progress badly needed recognition of the cannabis industry. We believe it is important that capital markets be included if the government believes in true banking reform, and we will see what happens next in the currently volatile House.” - Morgan Paxhia, Managing Director & Co-Founder, Poseidon Investment Management
"The SAFER Banking Act represents a monumental step towards a more inclusive and secure cannabis industry. By granting cannabis businesses access to traditional banking services, this act will spur innovation, enhance transparency and drive economic growth for all. It's time to bridge the gap between the cannabis industry and financial institutions, empowering businesses to thrive and providing customers with seamless purchasing experiences just like when shopping for everything else in this world. Let us embrace this historic opportunity to shape a future where the potential of the cannabis industry and the impact of the plant knows no bounds. Together, we can build a solid foundation for progress, collaboration and the continued evolution of this dynamic market and provide access to this plant that helps millions of people around the world." - Socrates Rosenfeld, CEO & Co-Founder, Jane Technologies
“Passage of the SAFER Banking Act marks the beginning of a new era for the cannabis ecosystem. A wave of consumer change is upon us: our proprietary data suggests cannabis will be bigger than alcohol in 10 years. We expect this, coupled with HHS’s historic rescheduling recommendation, to drive fresh capital toward the cannabis industry.” - Ian Dominguez, Managing Partner, Delta Emerald Ventures
“We are thrilled to see the hard work of SAFER’s bipartisan sponsors pay off in the Senate Banking Committee hearing today and hope to see the same support as the bill continues to advance through the legislative process. Cannabis operators of all sizes deserve fair treatment by the federal government, and this important bill represents a simple but crucial step closer towards that goal.” - David Goubert, President & CEO, Ayr Wellness
“The passage of the SAFER Banking Act is a significant step in the right direction for the industry at a time when it is needed most. By pulling the cash component out of businesses and into banking institutions, SAFER should, in theory, eliminate the public safety risk related to the all-cash nature of the cannabis industry. We expect that, over time, the cost of capital for cannabis companies will begin to come down as well. The final language of the bill reflects a tough negotiation that has spanned years and several legislative sessions. While we are happy to see SAFER finally move forward, we understand there is much more work to be done to address the harm caused by the failed war on drugs. California operators can expect to see a decrease in the cost of capital in the not-so-distant future should SAFER ultimately become law.” - Ed Schmults, CEO, StateHouse
“Today’s favorable vote for the SAFER Banking Act is a recognition of the importance of cannabis companies having the same access to capital as any other industry operating in the United States. This step forward demonstrates the importance that legislators place on the safety of cannabis operators and their customers, as well as the need for cash flow and banking to sustain a thriving cannabis industry in our country, which has yet to reach its full potential. We are hopeful that the revised language and clearer guidelines for financial institutions will continue to break through the many unproductive hurdles that have prolonged the passage of this bill for far too long. With this in mind, we urge legislators not to let this opportunity pass and keep this long-awaited momentum going.” - Bryan Murray, EVP, Government Relations and Communications, Acreage Holdings
