Senators introduce broad cannabis bill as safe harbor push continues

Senate Democrats introduced sweeping legislation to end federal cannabis prohibitions, potentially paving the way for an ICBA-advocated cannabis banking safe harbor.

Senate Bill: Introduced by Senate Majority Leader Chuck Schumer (D-N.Y.), the new legislation to decriminalize cannabis at the federal level and allow states to set their own laws lacks bipartisan support and is unlikely to pass the Senate.

Moving Ahead: The introduction of the Senate bill could nonetheless begin the process of advancing the bipartisan SAFE Banking Act in the upper chamber. The ICBA-advocated bill, which would establish a cannabis banking safe harbor in states where cannabis is legal, has passed the House seven times—most recently last week as part of a defense authorization bill.

Safe Harbor: The cannabis banking safe harbor is designed to address a conflict between state and federal law that presents legal uncertainty for community banks, inhibits access to the banking system for cannabis-related businesses, and creates public safety concerns by forcing these businesses to rely on cash.

Next: While ICBA continues advocating passage of the SAFE Banking Act in the Senate, community bankers can weigh in with their lawmakers using ICBA’s Be Heard grassroots resource center.

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