The SAFE Banking Act, aimed at enabling marijuana banking throughout the United States, has secured an additional sponsor, bringing the total to 118.
Congressmember John Garamendi (D-CA) added his support yesterday, bolstering the legislation’s backing within the House of Representatives.
Initially introduced in September by a collective of 10 lawmakers, the SAFE Banking Act continues to gain momentum. The bill allows accredited banks and credit unions to provide a suite of banking services, including debit card processing and loans, to marijuana businesses adhering to state regulations. Despite state licensing, these businesses are currently unable to access banking services due to federal restrictions, compelling many to operate solely with cash and heightening their risk of theft.
The legislation also proposes changes to IRS regulations, which currently prevent state-legal marijuana businesses from claiming standard business tax deductions because their product remains federally prohibited. Under the SAFE Banking Act, these businesses would be eligible for the same tax deductions as other enterprises.
The Senate has introduced its own version of the bill, the SAFER Banking Act, which passed through the Senate Banking Committee in September63 and is supported by 36% of the Senate.
Recent polling indicates robust support for the legislation, with 63% of U.S. adults favoring Congressional action to allow cannabis businesses access to essential financial services in states where cannabis is legally recognized, compared to 17% opposed.
The Drug Enforcement Administration (DEA) has recently announced a significant shift in the classification of marijuana, moving it from Schedule I to Schedule III of the Controlled Substances Act. This reclassification could potentially pave the way for medical marijuana dispensaries to access banking services. However, this change is unlikely to extend to recreational marijuana stores.
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