U.S. House of Representatives Advances Cannabis Banking Bill; Final Passage Uncertain

WASHINGTON, D.C.–On Friday, the United States House of Representatives approved a popular cannabis banking reform amendment proposed by the U.S. Rep. Ed Perlmutter (D-CO) that would provide protections to financial institutions assisting legal cannabis-based businesses as part of a larger package.

Perlmutter’s bipartisan Secure and Fair Enforcement (SAFE) Banking Act was approved by the US House of Representatives 222-210 as part of the America COMPETES Act, legislation to boost America’s competitiveness with China and address the country’s semiconductor shortage.

Following the House vote, Perlmutter said in a statement, “I’m delighted to see it included in the America COMPETES Act, and I’ll keep pressing to ensure it remains in the final package negotiated with the Senate.”

 U.S. Rep. Ed Perlmutter (CO-07)

Perlmutter co-sponsored the SAFE Banking Act with 107 other senators in March 2021. The bill has now been approved by the House six times, the most recent time being in December 2021 as part of the fiscal year 2022 National Defense Authorization Act.

This version of the act was added as an amendment to the America COMPETES Act on Thursday — would allow cannabis-related businesses in states with some form of legalized cannabis and strict regulatory structures to access the banking system, reducing the risk of public safety in communities across the country.

The proposal will, however, need to survive passage in the Senate, where Democrats majority is too slim to override strong Republican opposition to Federal legalization of cannabis from Republican Minority leader, Mitch McConnell, and from another leading Republican Senator, Mike Crapo. Both Republican senators are on record as opposed to Federal legalization of cannabis.