Bankers groups from all states are pressuring the Senate to advance cannabis banking bill

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The Senate is stalling on the SAFE Act, which gives more time for support to increase

There is still a lack of action by Senate leaders when it comes to passing the Secure and Fair Enforcement (SAFE) Banking Act. However, the 50-state American Bankers Association continues to insist that it is time for this group of lawmakers to get on the ball and do what is necessary to get the measure green-lighted as soon as possible.

To make their voices heard once again, last Thursday, the bankers’ associations sent a letter to lawmakers. “The SAFE Banking Act is an urgently needed, and widely supported, bipartisan legislative solution to allow banks to handle the proceeds from the state-licensed cannabis business and the accountants, skilled trades, landlords, law firms, and other service providers they rely on for legal operations,” read part of the text.

Banks are still unable to provide services to state-legal cannabis businesses as it is prohibited by federal law. Even ancillary businesses that serve the industry cannot apply for these financial services.

Through the letter, bankers associations continue to express their security concerns about retail stores having to handle their operations in cash only as their access to financial institutions is impossible. This, as a result, also undermines the ability of cannabis regulators, law enforcement, tax collectors, and homeland security organizations to adequately monitor the industry.

Since 2019, the SAFE Banking Act, sponsored by Rep. Ed Perlmutter, has passed the US House of Representatives five times. However, the picture does not appear to be the same when it comes to facing the Senate. Banking associations want the Senate to stop being a bump in the road and finally give the measure the approval the cannabis industry so desperately needs.