Making the Cannabis Industry SAFER for America

Making the Cannabis Industry SAFER for America

After nearly a decade of conversations and education on The Hill, the Senate Banking, Housing, and Urban Affairs Committee finally raised the bar on this policy. Secure and Fair Regulation (SAFER) Banking Act. Previously, safe bank law, the “R” is included to explain Sen. Jack Reed’s (D-RI) concerns about Section 10. The senator publicly shared his own concerns on May 11 during a “Consideration of Cannabis Banking Challenges for Small Businesses and Workers.” hearing. Sen. Reed said that the language in Section 10 would “make it more difficult for federal regulators to issue warnings about customer relationships that pose significant risks to banks,” and that such provisions would “make it more difficult for federal regulators to issue warnings about relationships with customers that pose significant risks to banks.” It’s not limited to the marijuana industry.” “Without an effective response from regulators, it could allow pyramid schemes and all sorts of other interesting activities to continue,” he said. Since then, he and Majority Leader Chuck Schumer (D-N.Y.), Senate Banking Chairman Sherrod Brown (D-Ohio), Sen. Steve Daines (R-Mont.), and Sen. Cynthia Lummis (R-Wyo.), Kevin Cramer (R-North Dakota), and Kyrsten Sinema (Iowa-Ariz.) to develop language that addresses such concerns while retaining Republican support. Their relentless efforts led to the SAFER Banking Act.

Number of depository institutions actively conducting banking operations
US cannabis business
(Reported by SARS)

The difference between the SAFE Banking Act and the SAFER Banking Act is primarily in Section 10. Changes will be focused on and determined by:

  • How regulators can suspend bank accounts.
  • How the Federal Deposit Insurance Corporation (FDIC) is developing guidance for financial institutions serving state-licensed cannabis businesses.
  • How is income from cannabis business activities managed under state law?
  • Personal and political beliefs cannot influence the decisions of financial regulators.
  • Federal banking regulators, state banking regulators, and their Commerce and Treasury secretaries will develop rules to increase access to savings accounts and will allow such individuals to access rural, low- and moderate-income, Determine how to strengthen customer relationships with tribal communities that do not.and
  • How the FDIC conducts and reports on its biennial survey of small business barriers.

During Wednesday’s markup, members introduced and discussed a series of amendments related to criminal justice reform, the racial wealth gap, federal regulators and processes, schedule changes, and the opioid epidemic. There were a total of six amendments, including one by Chairman Brown, Sen. Mike Crapo (R-Idaho), Sen. Bill Hagerty (R-TN), and Sen. Mike Rounds (R-SD). ), and two by Sen. Raphael Warnock (D). -GA). Sen. Brown’s amendment, which makes technical changes to the bill, was the only amendment to win on a 17-6 vote.

Senate Majority Leader Chuck Schumer (center), Senate Finance Committee Chairman Ron Wyden (right), and Senator Cory Booker (left)

At the launch of Markup, Chairman Brown said that advancing this bill is an important step toward reversing the damage caused by the War on Drugs, and that the SAFER Banking Act would create a better financial system for small and medium-sized cannabis businesses that lack access. to such traditional banking services. Sen. Daines, who served as the committee’s ranking member in place of Sen. Tim Scott (R-S.C.), who was in California preparing for the Republican presidential debate, said he opposes legalization and decriminalization but does not support them. He said he agreed to help. Because the SAFER Banking Act would modify the current banking system for cannabis businesses across the country. After hearing statements from Sen. Lummis, Sen. Catherine Cortez Masto (D-Nev.), and Mr. Sinema, the committee voted on the bill and approved it for passage to the Senate floor by a vote of 14-9. . Senators who voted in favor of the bill were Brown, Tester, Warren, Reed, Menendez (acting), Smith (acting), Warner, Fetterman, Cortez-Masto, Sinema, Van Hollen, Lummis, Kramer, and Daines. Yes, Brown, Tester, Warren, Reed, Menendez, and Smith (alternates) voted against the bill. The delegates were Senators Warnock, Scott (acting), Crapo, Tillis, Kennedy, Hagerty, Vance, and Britt.

After the vote, Sen. Jeff Merkley (D-Ore.) brought the early efforts of Sen. Rand Paul (R-Ky.) and former Republican Sen. Cory Gardner (Colo.) to the floor to bring the bill and issue to the floor. I was grateful for the attention and came to a conclusion. He said he wanted to have a robust discussion with all senators.

Once a bill is out of committee, it heads to the Senate floor for additional comments, debate, and possibly a vote. House Minority Leader Schumer said he intends to bring the SAFER Banking Act to the floor “at full speed,” along with Rep. Dave Joyce’s (R-Ohio) Pursuit of Elimination of the Opportunity Opportunity Act (HOPE) and the House bill. He said that he would do his best to submit the following. From Brian Mast’s (R-FL) Gun Rights and Marijuana (GRAM) Act to the final bill. Senator Schumer also shared that such a provision would address the war on drugs, strengthen social equity and criminal justice reform, and protect the Second Amendment rights of medical marijuana patients.

It is not yet clear when the SAFER Banking Act will be considered, but Leader Schumer has repeatedly stated that he hopes to pass it by the end of the year.

With two decades of dedicated experience, Nuggs is a seasoned cannabis writer and grower. His journey has been a harmonious blend of nurturing cannabis from seed to harvest and crafting insightful content. A true expert, they've honed strain-specific knowledge, cultivation techniques, and industry insights. His passion shines through enlightening articles and thriving gardens, making them a respected figure in both the growing and writing facets of the cannabis world.

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