Blumenauer Lauds House Passage of Federal Legislation to Give Cannabis Businesses Access to Banking Services
Today, the U.S. House of Representatives passed federal legislation to provide legitimate cannabis businesses access to banking services, an issue that has long been championed by U.S. Rep. Earl Blumenauer (D-OR), founder and co-chair of the Congressional Cannabis Caucus. The bipartisan passage of the Secure And Fair Enforcement (SAFE) Banking Act in the 117th Congress comes as Portland-area cannabis businesses and their workers continue to be targeted with violent robberies that have been linked to a system that forces cannabis businesses to deal almost exclusively in cash.
“Cannabis will soon be a $20 billion industry and is overwhelmingly supported by the American public. The insane prohibition on banking services serves no one's interest, except for money launderers, tax evaders, or those who are going to rob these cash-rich businesses,” Blumenauer said. “As we continue to push forward with full legalization, addressing this irrational, unfair, and unsafe denial of banking services to state-legal cannabis businesses is a top priority. This is a critical element of reform that can’t wait, and I urge our cannabis champions in the Senate to take up this legislation as soon as possible.”
Under the federal prohibition on cannabis, banks and credit unions are currently prohibited from serving cannabis businesses, even with financial products as simple as savings accounts or payroll checks. Notwithstanding the financial and practical hardships facing legal cannabis businesses, forcing these businesses to operate on a cash-only basis creates a public safety risk and makes tracking revenue more difficult for tax purposes.
The cash-only nature of cannabis businesses also makes them easy and frequent targets for robberies, which puts workers at risk. According to a March 2021 report by Willamette Week, in the preceding 10 months, Portland cannabis shops were robbed, burglarized, or looted 95 times – often at gunpoint – resulting in one tragic fatality.
The legislation passed in the House would prohibit federal regulators from taking punitive measures against depository institutions that provide banking services to legitimate cannabis-related businesses and ancillary businesses like the electricians, plumbers, and the landlords that serve them. The SAFE Banking Act also requires a GAO study and annual regulator reports to Congress to ensure equal access to credit and to reduce barriers to marketplace entry for potential and existing minority- and women-owned cannabis-related businesses.
Full text of the SAFE Banking Act can be found here.