U.S. Senate Banking Committee Advances SAFER Banking Act: A Look at the Stance and Votes

WASHINGTON — The U.S. Senate Banking Committee’s anticipated markup of the SAFER Banking Act took place on Sept. 27, marking significant progress in the upper chamber for the legislation. The bill aims to streamline cannabis-related banking, and its progress in the Senate has been watched closely by many in the cannabis industry.

Despite numerous passages in the U.S. House since 2019, the Secure and Fair Enforcement Regulation (SAFER) Banking Act of 2023 (S. 2860) faced hindrances in the Senate due to Washington politics. Furthermore, as the cannabis industry adjusts to the post-COVID market, the need for favorable banking conditions has become more pronounced.

To reach this pivotal point, the Senate Banking Committee dedicated months to ironing out specifics, especially Section 10. This section concerns the oversight of financial institutions by federal banking agencies.

Ahead of the vote, the Cannabis Business Times made forecasts on the stances of the committee’s 23 members:

Democrats:

• Support: Sherrod Brown (Ohio), Jack Reed (R.I.), Jon Tester (Mont.), Mark Warner (Va.), Elizabeth Warren (Mass.), Chris Van Hollen (Md.), Catherine Cortez Masto (Nev.), Tina Smith (Minn.), Kyrsten Sinema (I-Ariz.), and John Fetterman (Pa.).
• Uncertain: Raphael Warnock (Ga.)
• Absent (Yes): Bob Menendez (N.J.), due to a court appearance related to corruption and bribery charges.

Republicans:

• Support: Cynthia Lummis (Wyo.), Kevin Cramer (N.D.), and Steve Daines (Mont.).
• Oppose: Mike Crapo (Idaho), Mike Rounds (S.D.), Thom Tillis (N.C.), and John Kennedy (La.).
• Uncertain: Bill Hagerty (Tenn.), JD Vance (Ohio), and Katie Britt (Ala.).
• Absent (No): Tim Scott (S.C.), who was at the GOP presidential debate.

Ultimately, in a 14-9 roll call, the SAFER Banking Act garnered support from the committee:

YES (14): Sherrod Brown, Jack Reed, Menendez, Jon Tester, Mark Warner, Elizabeth Warren, Chris Van Hollen, Catherine Cortez Masto, Tina Smith, Kyrsten Sinema, John Fetterman, Cynthia Lummis, Kevin Cramer, and Steve Daines.

NO (9): Tim Scott, Mike Crapo, Mike Rounds, Thom Tillis, John Kennedy, Bill Hagerty, JD Vance, Katie Britt, and Raphael Warnock.

The successful markup represents a milestone for cannabis businesses, both big and small. As the industry watches, the next steps in the legislative process could determine the trajectory of banking for cannabis in the U.S.