WASHINGTON — The SAFER Banking Act, the latest iteration of a bill that would make it easier for banks to serve legal cannabis businesses, passed through the Senate Banking Committee in a 14-9 vote.
The bill had both bipartisan support and
This is the first time the Senate has considered the legislation. An earlier version, the SAFE Banking Act, had passed the House seven times previously.
The markup and the deal between parties was made possible after a breakthrough among some Senate Republicans, who want to codify protections for certain businesses, such as gun sellers, that Republicans say are politically disfavored in Democratic administrations. Some of the Republican lawmakers who support the SAFER Banking Act come from states where recreational marijuana isn't legal.
"I want to start by saying that I am opposed to the legalization or decriminalization of marijuana," said Daines, who stood in for Sen. Tim Scott, R-S.C., as the top Republican during the hearing. "But the SAFER Banking Act is not about that."
The legislation now goes to the full Senate.
Bank groups have advocated in favor of cannabis banking legislation, which would open up a growing industry to their members.
"This urgently needed, bipartisan legislation will resolve the ongoing conflict between state and federal law so that banks can serve state-authorized cannabis and cannabis-related businesses while enhancing public safety, tax collection and financial transparency," said Rob Nichols, president and CEO of the American Bankers Association, in a statement. "The status quo is simply untenable for consumers, small businesses and banks operating in states where cannabis is legal. Based on today's bipartisan vote, we urge the full Senate to promptly consider this bill."
The bill's fate once it arrives in the House is less certain. Rep. Patrick McHenry, R-N.C., chairman of the House Financial Services Committee, has signaled in the past that he wouldn't prioritize marking that bill up in his committee. On top of that, last-minute language additions in the updated SAFER Banking Act had been requested by the original architects of the anti-Operation Choke Point provision, which made the updated version more palatable to Senate Republicans, but could make it more difficult for Republicans to consider the legislation.
During the markup, Sen. Mike Crapo, R-Idaho, proposed an amendment that would have bolstered that language and more robustly restrict how bank regulators advise banks on reputational risk. The amendment was defeated with 15 lawmakers voting against it and eight voting in favor.
The entire cannabis banking package also faced unexpected opposition from Warnock, who argued that it would "make things worse" by setting "the terms for a step backwards in the pursuit of equity and justice and safety."
"Who does this so-called SAFER Banking bill actually make safer?" Warnock said. "Certainly not the millions of Americans locked up for nonviolent drug offenses."
Warnock said he would support the provisions of the bill if it was paired with broader reforms that "substantively address the issue of restorative justice."
"Instead, this bill will make life safer for bankers for financial institutions, some of whom have been profiting from the cannabis industry illegally for years," he said.
