Below is a brief excerpt from a complimentary research note written by our Cannabis analyst Howard Penney. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.
H.R. 1996 (117), The SAFE Act, which makes it easier for financial institutions to offer services to the cannabis industry passed the House on a strong bipartisan vote — 321 to 101 — Monday evening, with 106 Republicans voting in favor.
Under Democratic control, the bill has a much stronger chance of being brought up for a vote in the Senate.
Senate Majority Leader Chuck Schumer said he supports the cannabis banking bill but wants to move it simultaneously as comprehensive reform, which could complicate its trajectory.
On the other side, a bipartisan group of 20 governors and one territorial governor is urging Congress to pass the SAFE Banking Act.
"Cannabis businesses operating legally under state law are still forced to conduct business on a cash-only basis, creating a range of security risks because the drug's status with the federal government has shut companies off from traditional banking services.
The policy disconnect is not only a safety issue, the governors said, but a matter of inefficiency and unnecessary costs to taxpayers."