The fate of the Secure and Fair Enforcement (SAFE) Banking Act, aimed at allowing financial institutions to provide services to cannabis-related businesses (CRBs) legalized by the states, remains unclear as Congress returns to Washington, D.C.
Many in the AML/CFT community have been watching the unfolding of the SAFE Banking Act for some time now with no significant progress. The SAFE Banking Act hit a wall in Congress in 2022 after lawmakers excluded it from a $1.7 trillion government funding bill. It was the seventh time the legislation had passed in the House of Representatives but failed to get through the Senate.
This year, the SAFE Banking Act of 2023 could encounter additional delays if Congress can’t pass the necessary spending bills to head off a government shutdown on Oct. 1,
“The longer Congress goes without a spending deal in place, the less time there will be on legislative calendars for other business,” according to MjBizDaily, which provides news for cannabis industry professionals.
Reggie Babin, a former top aide to Senate Majority Leader Chuck Schumer, told the website that October was the most likely window for Congress to take up the SAFE Banking Act. “But that could be complicated if there’s a shutdown that costs you legislative days in the fall,” said Babin, now senior counsel at D.C.-based law firm Akin Gump Strauss Hauer & Feld, which represents marijuana-related businesses.
A quick agreement, on the other hand, could pave the way for forward progress on the bill.