SAFE Banking Act Passes House Financial Services Committee

April 03, 2019 Regulation

The SAFE Banking Act, initially introduced by Ed Perlmutter (D-Colorado) and Denny Heck (D-Washington), is now co-sponsored by 152 legislators from both sides of the aisle. That’s more than a third of the entire House of Representatives, having passed the House Financial Services Committee  with a strong 45-15 vote. If fully approved, the act will allow banks to work with legal cannabis companies. This potentially streamlines the market, which has been forced to operate on a cash-only basis for years, as well as opens it up to broader competition and innovation. Ten U.S. states, along with Washington D.C., have currently legalized marijuana use. It’s crucial that cannabis businesses in these states have access to all the same banking services as other legitimate businesses.  Senator Michael Bennet, (@senatorbennet on Twitter,) further highlighted the need for legal banking services by pointing out potential safety issues with the cash-only market, saying:

“Right now, legal marijuana businesses must operate on a cash basis—raising significant public safety concerns. The #SAFEBankingAct will give these businesses access to much-needed banking services.”

The bill is not yet scheduled for discussion in the full house, but a vote is expected in the coming weeks.


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