SAFER Banking Act Passes Banking Committee Notes Wedbush2023-09-27 02:06:48 PM ET (MT Newswires)
2:06 PM EDT, 09/27/2023 (MT Newswires) -- Members of the Senate Banking Committee voted to pass the Secure and Fair Enforcement Regulation (SAFER) Banking Act, in a 14-9 vote. While most senators agreed that the bill represents "common sense policy" and was a good step in the right direction for the industry, there was some opposition to its lack of social equity language, notes Wedbush. "That said, we are encouraged by the passage of this bill through Senate Banking, and note that this marks the first time the Senate has taken the lead, following multiple initiatives by the House."
The bill now heads to Majority Leader Chuck Schumer (D-NY) where he will need to walk a fine line between adding criminal justice provisions to satisfy his base while also not alienating Republicans currently on board with the drafted language. Based on previous commentary, Schumer will likely look to amend the Bill on the floor to include both the HOPE Act (expunging records for people incarcerated for cannabis in states where it is legal), and GRAM Act (protecting the Second Amendment rights of cannabis users). These two amendments should largely provide an offset and help to ease the collective concerns among both parties. However, Wedbush notes that it still remains unclear whether progressive lawmakers will demand more social equity provisions on top of HOPE, which will make it more difficult to get the bill over the finish line without offering more capital markets/regulatory concessions to Republicans.