Legislation to allow marijuana banking has 140 sponsors in the United States Senate and House of Representatives.
The SAFE Banking Act in the House now has 104 sponsors, with the updated SAFER Banking Act in the Senate having 36. This brings the combined total to 140, representing 26% of the entire US Congress.
Although they differ slightly, both bills would allow banks and other financial institutions such as credit unions to provide banking services to state-legal marijuana businesses. For example, this would allow banks to prove debit card processing to marijuana stores, allowing them to no longer operate under a risky cash-only model. It would also allow financial institutions to offer bank loans to marijuana businesses.
Both bills would also permit marijuana businesses to claim standard tax deductions that are currently not allowed under the IRS.
The SAFE Banking Act has not yet seen movement in the House, but in the Senate the SAFER Banking Act has already been approved through the Committee on Banking, Housing and Urban Affairs with bipartisan support. Following the September vote Senate Majority Leader Chuck Schumer vowed to put the measure to a vote of the full Senate “very soon”, with him saying in November that the chamber was “getting close“ to a vote.
Earlier this week Schumer said the SAFER Banking Act remains a key priority for the Senate, which he’s hoping to get passed before the November election.
According to polling released in October, by greater than a 2-to-1 margin “U.S. adults support Congress passing legislation that allows cannabis businesses to access banking services.”
Recent federal disclosures show that in the final quarter of 2023, PayPal lobbied heavily in favor of the SAFE Banking Act. The SAFER Banking Act has the support of the National Conference of State Legislatures, as well as a bipartisan group of 22 attorneys general.
