U.S. Cannabis Banking Reform Faces New Hurdles Amid Political Drama

WASHINGTON D.C. — Recent optimism surrounding potential U.S. cannabis banking reform has encountered obstacles, with unrelated political issues clouding prospects for legislative passage. While there is hope for the U.S. Senate to pass the SAFER Banking Act, which would protect financial institutions serving state-legal marijuana businesses from federal prosecution, the political tumult in the House of Representatives poses challenges.

The SAFER Banking Act, having cleared a pivotal Senate committee in September, awaits a historic Senate floor vote. However, unrelated political intricacies, including the selection of a new House Speaker and international concerns like the escalating conflict in Israel, might overshadow the cannabis banking issue.

Further complicating the scenario, prominent House Republicans, including proposed Speaker candidates Rep. Steve Scalise of Louisiana and Rep. Jim Jordan of Ohio, are known critics of marijuana-policy reform. Scalise’s recent withdrawal from the speaker race has added to the uncertainty.

Despite these challenges, Senate Majority Leader Chuck Schumer remains an ardent supporter of the SAFER Banking Act. Schumer’s advocacy for a “SAFER-plus” package, encompassing gun-ownership rights and cannabis arrest-record expungements, suggests his commitment to the bill’s passage.

David Culver, of the U.S. Cannabis Council, anticipates a Senate vote on the Act in the upcoming work period, asserting that unrelated political events will not deter Senate action. Still, should the Senate approve the bill, the House must follow suit. Previous versions of the banking bill have passed the House multiple times, but current disagreements among House Republicans regarding the bill’s language may hinder progress.

The timing is also crucial. As the 2024 presidential elections approach, Congress’s focus on stand-alone bills like the SAFER Banking Act might wane. Yet, industry observers remain hopeful, particularly given the Biden administration’s recent recommendation to reschedule cannabis. Such a move could address many of the marijuana industry’s federal tax challenges, indicating that while SAFER Banking remains crucial, broader reforms might be on the horizon.