The U.S. Senate Banking Committee has scheduled a mark-up for a newly revised version of the Secure And Fair Enforcement Regulation (SAFER) Banking Act (SB 2860), formerly known as the SAFE Banking Act. As reported by JD Supra, the revised bill aims to deal with multiple concerns including potential bad actors.
The SAFER Banking Act also establishes guardrails for federal regulators who may wish to pressure banks not to service clients such as “marijuana-related businesses” or other industries that are perceived as high-risk. This measure underscores an ongoing conversation in regulatory circles around the handling of clients involved in the burgeoning legal cannabis industry, as well as those considered high-risk by the broader financial community.
While initial readings of the Act may suggest simply an update to existing legislation, the implications for corporations, particularly those operating in industries such as legal marijuana or other sectors deemed high-risk, could be considerable. The SAFER Banking Act proposes not just a rethinking of certain regulatory approaches, but a potential restructuring of the relationships between banks, regulators, and those defined as “high-risk” businesses.
In essence, the Act is part of a larger trend of continuous regulatory shifts and negotiations around risk, client eligibility, and the role of financial institutions in enforcing regulatory measures. As legal professionals working in the corporate world, understanding what the Act entails and its potential implications is crucial. Future hearings and subsequent revisions of the Act will help provide more clarity on the rippling effects it might have on businesses, large and small.