A Colorado Congressman, with the official backing of more than 100 colleagues from both major political parties, has reintroduced the SAFE Banking Act in Congress in a renewed attempt to legally protect financial institutions (FIs) that work with the marijuana industry.
“The purpose of this Act is to increase public safety by ensuring access to financial services to cannabis-related legitimate businesses and service providers and reducing the amount of cash at such business,” the introduction to the measure stated.
U.S. Rep. Ed Perlmutter, who is the lead sponsor of the measure, said in a prepared statement: “The genie is out of the bottle and has been for many years. Thousands of employees and businesses across this country have been forced to deal in piles of cash for far too long, and it is the responsibility of Congress to step up and take action to align federal and state laws for the safety of our constituents and communities.”
Perlmutter added: “The public safety need is urgent, and a public health and economic need has also emerged with the pandemic further exacerbating the cash-only problem for the industry. In many states, the industry was deemed essential yet forced to continue to operate in all cash, adding a significant public health risk for businesses and their workers.”
Under current law, the Boulder Daily Camera reported, FIs that provide services to marijuana-related businesses are exposed to federal money-laundering charges. Colorado is among states that have legalized the sale and possession of marijuana, but federal law still prohibits both.
The U.S. House previously passed similar legislation touted by lawmakers noting that marijuana is legal in some form in nearly every state and the District of Columbia, PYMNTS reported. The U.S. Senate, then controlled by Republicans, killed that measure.
The new bill was referred to the House’s Financial Services Committee and Banking Committees.
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