In an ongoing saga much akin to watching a pot waiting for it to boil, advocates of the SAFE Banking Act must be developing a Charlie Brown-like complex when it comes to moving the proposal forward. The beleaguered proposal once again finds itself stuck, simmering in committee while Congress takes its August recess, reports Bradley Arant Boult Cummings LLP.
For those not in the loop, the SECURE and Fair Enforcement Banking Act, better known as the SAFE Banking Act, has been touted as a significant piece of legislation that could substantially change the landscape of financial services in several vibrant and emerging industries. Unfortunately, its progress has been stunted repeatedly, hitting snags that keep sending it back to committee for further consideration.
In simplest terms, the SAFE Banking Act aims to protect financial institutions that service cannabis-related businesses in states where marijuana is legal. As marijuana remains a controlled substance at the federal level, financial institutions are wary of running afoul of federal law even in states where such trade is legitimate, leading to a financially underserved industry.
Despite the critical need for such a legislative framework to support growing cannabis industries without pushing them into endlessly circuitous financial gymnastics to handle their banking needs, the SAFE Banking Act remains in legislative limbo. The frustrating stop-start pattern of this proposal’s progress can be seen as emblematic of the wider disconnect between evolving state laws and the stagnant federal stance on the issue.
As Congress resumes after the August recess, attention will return to the simmering pot of the SAFE Banking Act. Whether it finally reaches a boil, heralding a new wave of banking options for cannabis entrepreneurs, remains to be seen. Yet the resilience of those pushing for its success is likely to match or exceed that of their fictional counterpart, Charlie Brown. Once again, eyes will be on committee proceedings, watching hopefully for the much-anticipated lift-off of this critical legislation.