Senator Sherrod Brown Foresees Progress on Cannabis Banking Reform Amid Political Uncertainties

LOS ANGELES– In a recent interview with Punchbowl News on Monday, US Senator Sherrod Brown, a Democrat and the Chair of the Senate Banking Committee, expressed optimism regarding the forward movement of cannabis banking reform, specifically highlighting the potential advancements of the SAFE Banking Act in the coming weeks.

Despite the imminent threat of a government shutdown in Washington DC, Senator Brown indicated that a necessary hearing concerning cannabis banking reform could potentially be scheduled “in the next six weeks”. The SAFE Banking Act, which is at the forefront of this legislative initiative, seeks to shield banks from federal penalties when servicing legal cannabis-related businesses. Additionally, the act aims to safeguard revenues generated from lawful transactions and restrict account terminations that are solely based on reputational risk.

Senator Brown has been actively championing several legislative initiatives, including the SAFE Banking Act, alongside others such as the RECOUP Act and the FEND Off Fentanyl Act. While the House of Representatives has previously passed the SAFE Banking Act, it has encountered significant obstacles in the Senate. Despite an informational hearing held in May, the act has not yet progressed to the pivotal “markup” session, a necessary step for further amendments and voting procedures.

However, it is worth noting that previous timelines and commitments regarding the legislation have not been met, casting a shadow of uncertainty over the proceedings. This includes Senator Brown’s earlier pledge to facilitate a markup hearing within a span of two to three weeks, a promise that has yet to be realized.

The current political climate further complicates the trajectory of the SAFE Banking Act. With the government facing a potential shutdown if the ongoing budget dispute is not resolved by September 30, the focus and resources required to advance the SAFE Banking Act might be significantly diminished. This situation underscores the complex challenges of navigating banking reform amidst a backdrop of broader political issues and uncertainties.

As the deadline approaches, stakeholders and proponents of the reform are keenly watching the developments, hopeful that the changing tides will finally usher in a new era of banking regulations pertaining to the cannabis industry.