Since marijuana remains federally illegal, banks have ultimately avoided doing business with cannabis companies.
Naturally, this has caused a number of issues. The most notable being many dispensaries only operate in cash, causing them to be a prime target of burglaries.
The SAFE Banking Act is a proposition currently floating around Congress that would allow marijuana businesses easier access to banking. However, it fumbled for some time with most unsure of its passage.
Throughout that time, more and more states have legalized both recreational and medicinal use. And with this progress, more than half the country has come to an agreement that the federal ban on marijuana needs to end, according to a poll by Data for Progress.
That same poll also found that 65% of voters agree banks should not discriminate against legitimate cannabis businesses. To further this, 57% of voters support cannabis garnering guaranteed access to the U.S. financial system.
In other words, most of the country is in agreement that the SAFE Banking Act should be passed.
On top of this, the poll also states:
- 3 in 4 voters agree workers in marijuana-related businesses deserve federal public benefits.
- 73% of voters agree cannabis workers should have access to federally-backed housing loans.
- 72% of workers agree that cannabis workers deserve access to federally assisted housing (if in need).
These numbers come from voters of both parties and are an obvious indication of changing perspectives. But more than this, it’s proof that changes need to be made in federal regulations surrounding cannabis and banking.
The Future of the SAFE Banking Act and Other Marijuana Reforms
Since 2021, the SAFE Banking Act has been in circulation. On July 14th, 2022, the House of Representatives passed the act on a 277-150 vote. However, since this time, we haven’t heard much in concerns with its passage.
President Joe Biden has made promises to federally decriminalize cannabis. The primary goal of this is to pardon thousands of marijuana possession charges.
Interestingly, the Data for Progress poll also found that 52% of voters agree that marijuana-related convictions should be expunged for nonviolent offenses. Still, as with the SAFE Banking Act, not much movement has been made here either.
Since both these initiatives were laid out, Republicans garnered a majority in the House (and potentially the Senate), due to the midterm elections.
Naturally, this may inhibit some of the progress the Biden administration is attempting to make in terms of federal cannabis prohibition. For it’s no secret Republicans still aren’t as adamant about legalization.
And such adamancy isn’t just lacking in Republican politicians. As we saw in Arkansas, North Dakota, and South Dakota – three states with a majority of Republican voters—all said no to recreational cannabis during the 2022 mid-term elections.
With this in mind, the future of the SAFE Banking Act remains up in the air. As of now, Independent Community Bankers of America and 44 state partners are demanding a vote be made before 2023.
Senate Majority Leader Chuck Schumer (D-NY) has been working on a piece of legislation that will contain language of the SAFE Banking Act. With the hope that it will find bipartisan support and relieve conflicts between state and federal law.
