Though cannabis is legal in some form in dozens of states, many risk-adverse banks and financial institutions choose not to do business with those in the industry because marijuana remains illegal at the national level. As a result, many cannabis-related businesses operate on a cash-only basis, not accepting credit cards and paying their taxes in cash, making them targets for criminal activity such as break-ins and theft.
What is the SAFE Banking Act?
H.R. 1595, the Secure and Fair Enforcement (SAFE) Banking Act, would prevent federal regulators from taking action against banks and other financial institutions for working with cannabis-related businesses that are operating legally. The SAFE Banking Act would also help guide financial institutions in how to lawfully serve businesses in the cannabis industry. The Act would give legitimate cannabis businesses more stability and safety, and would detour criminal activity.
Current status of the SAFE Banking Act
The SAFE Banking Act was recently introduced to the House of Representatives with 106 original cosponsors, meaning a quarter of the House recognizes the need to address the industry’s banking issue. In order to reach the Senate, the SAFE Banking Act will need to pass the House by a simple majority (218 of 435).
Let your voice be heard
Call your representative today and urge them to cosponsor the SAFE Banking Act. Learn more about contacting Congress members here.