(CTN News) – After a lengthy and challenging journey through Congress, the SAFER Banking Act, a bipartisan legislation designed to allow banks to collaborate with cannabis businesses without fear of penalties, has gained significant momentum.
Recently, the Senate Committee on Banking, Housing, and Urban Affairs conducted a “markup” on the bill, leading to a decisive passage. This momentous development marks the first time that Senate members have voted in favor of such a measure.
The bill now heads to further debates, amendments, and votes in both the Senate and the House, aiming to reach President Biden’s desk. If successful, this legislation could potentially remove the banking ban that has plagued the legal cannabis industry since its inception.
A Game-Changing Victory:
The passage of the SAFER Banking Act could be an unprecedented victory for the Marijuana sector. It promises to end the practice of cannabis businesses in legal states operating solely on a cash basis, a vulnerability that exposes them to theft and various criminal activities.
Instead, these businesses will have the opportunity to open accounts with mainstream banks, bringing security and legitimacy to their operations.
Leaders within the cannabis industry have welcomed the Senate Committee’s passage of this landmark legislation. Mike Bologna, CEO of Denver-based vaporizer provider Dip Devices, emphasized the clarity and security it brings to financial institutions willing to serve state-sanctioned marijuana businesses.
He believes that this move will ease access to capital, encourage responsible financial practices, and drive innovation within the cannabis industry.
Bri Padilla, executive director of The Chamber of Cannabis, a nonprofit organization for Nevada cannabis professionals, expressed her excitement over the legislation’s progress but also highlighted the need to address taxation issues within the industry. She mentioned the impact of section 280E on businesses and hopes for further economic and financial reforms.
The passage of the SAFER Banking Act through the Senate Committee signifies a significant step towards addressing the financial challenges faced by legal cannabis businesses. It offers hope for the industry’s continued growth and development.
While this legislation is a vital milestone, there are still other hurdles, such as taxation concerns, that need to be addressed to fully unlock the industry’s potential.