Major Corporations Lobby for Cannabis Banking Reforms

NEW YORK — An analysis of recent Congressional lobbying disclosures has unveiled that prominent corporations like Bank of America, Mastercard, and GlaxoSmithKline, among others, are now lobbying for cannabis banking reform. The spotlight has been on the SAFER Banking Act, a legislative effort aimed at providing legal cannabis businesses access to mainstream banking facilities.

A Dive into the SAFER Banking Act

Legislation like the SAFER Banking Act is paving the way for legal cannabis operations to gain access to financial institutions. These have been previously inaccessible due to the federal prohibition of cannabis. This September, the Senate Banking Committee greenlighted the SAFER Banking Act, with anticipation of its introduction to the full Senate and subsequent move to the House.

As highlighted by Cannabis Wire, the reform in cannabis banking has gained considerable traction in Congressional lobbying, outshining other cannabis-related legislation.

Notable Players in the Lobbying Arena

• Mastercard: After initially lobbying for cannabis banking in 2019 and 2020, the credit card giant took a hiatus. However, this quarter, the SAFER Banking Act featured in its disclosure. Previously in July, Mastercard implemented a prohibition on marijuana transactions via its debit cards, complicating the already precarious cash-only operations of cannabis dispensaries.
• National Rifle Association (NRA): The NRA’s recent disclosures regarding the act did not specify a stance.
• Bank of America: In its disclosure, Bank of America cited issues related to the provision of financial services linked to the SAFER Banking Act. When approached, a spokesperson for the bank declined to comment on their lobbying position or stance on the bill.
• Chicago Board Options Exchange: Recognized for pioneering the world’s foremost options exchanges, this entity also integrated the SAFE Banking Act in its annual disclosures.
• International Association of Machinists and Aerospace Workers (IAM): Recently partnering with the Maine Cannabis Union, IAM announced its support for the SAFE Banking Act in its Q3 disclosure. IAM represents a colossal workforce, with over 600,000 members across 200+ industries.
• GlaxoSmithKline: After lobbying for hemp and CBD-specific legislations in 2021, GlaxoSmithKline disclosed its recent endeavors, lobbying the FDA about CBD regulations, specifically its promotion as a supplement or food additive.

What Lies Ahead for Cannabis Banking?

The landscape might witness a transformative change if the DEA considers the recent proposal by the Department of Health and Human Services. The suggestion involves reclassifying marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act. Such a move could significantly impact the primary rationale that has kept cannabis businesses at bay from mainstream banking channels.