On Tuesday, the House approved the inclusion of The Secure and Fair Enforcement (SAFE) Banking Act, which would provide state-legal cannabis companies with access to financial services, as an amendment to its version of The National Defense Authorization Act (NDAA). While SAFE Banking has previously passed out of the House with bipartisan support, it has been held back in the Senate. Some lawmakers have argued that SAFE Banking fits into the framework of the defense bill because it strengthens the financial system by keeping organized crime out of the cannabis industry and, as Representative Ed Perlmutter (D-Colorado), the bill’s sponsor has argued, reduces the risk of “violent crime in our communities.” Once the Senate passes its version of the NDAA, the House and Senate versions may have to go to conference. Only members of the House and Senate Armed Services committees are likely to be named as conferees.
Senate Majority Leader Chuck Schumer (D-New York) along with Senators Cory Booker (D-New Jersey) and Ron Wyden (D-Oregon) continue to draft a more comprehensive cannabis reform bill while many Democratic Senators insist that any cannabis banking provisions be tied to social justice reforms. Senator Booker has previously raised that banking reform legislation should not be done in the absence of such provisions. Thus, some Democrats could try and block such “incremental progress” if they believe it threatens broader, comprehensive reform. On Thursday, the House passed its version of the NDAA; however, the Senate is not nearly as far along in the process. Once the Senate passes its version, likely later this Fall, it could either go to conference as noted above, or both sides could trade amendments between chambers in order to iron out policy differences. Accordingly, the fate of the SAFE Banking amendment is uncertain but the ability for advocacy exists to help pass this important measure.
