cannabis banking act passes us house with bipartisan support
SAFE ACT Advances: Banking Access for Cannabis Businesses
The U.S. House of Representatives has approved significant legislation designed to alleviate constraints on the cannabis industry. The SAFE ACT (Secure and Fair Enforcement) banking act establishes protections for financial institutions engaging with cannabis operators.
Should it gain Senate approval and the President’s signature, this legislation would enable the cannabis sector to utilize conventional banking services, a resource currently largely inaccessible and necessitating substantial cash transactions.
Previous Attempts and Current Status
This marks the fourth instance of the SAFE ACT’s passage in the House. An earlier iteration of the bill secured House approval in 2019, but ultimately stalled within a Senate committee, failing to reach then-President Trump for consideration.
The present version of the SAFE ACT offers federal protection to banks and credit unions from prosecution when conducting business with cannabis companies operating in full compliance with their respective state regulations.
Impact on Financial Institutions
This protection would unlock traditional capital streams from financial institutions, which have been previously unavailable due to the ongoing federal illegality of cannabis.
Consequently, banks would be empowered to collaborate with operators within states where cannabis is legally sanctioned.
Current Legal Landscape
Currently, 36 states, four territories, and the District of Columbia have legalized cannabis for medical applications.
Furthermore, recreational cannabis use is permitted for adults in 18 states, two territories, and D.C.
Bipartisan Support and Future Outlook
The bill garnered substantial bipartisan support in the House, passing with a vote of 321-101.
Prior to the vote, a letter endorsing the legislation was submitted to House leadership by 20 state governors, one U.S. Territory, bankers representing each state, and a coalition of state treasurers.
Given the broad support from both political parties, advocates and industry analysts express increased optimism regarding the bill’s prospects for passage in the Senate and subsequent approval by President Biden.
Matt Burns
Matt Burns: A Profile of a Leading Technology Journalist
Matt Burns is an experienced journalist specializing in technology. He currently serves as Editorial Director at Insight Media Group, a position he assumed after a distinguished tenure as Managing Editor at TechCrunch.
Early Career and TechCrunch
Throughout his career, Burns has consistently demonstrated a talent for insightful reporting and editorial leadership. He dedicated over 15 years to TechCrunch, beginning as a contributor and ultimately ascending to the role of Managing Editor.
During his time at TechCrunch, he played a crucial role in the newsroom’s expansion and the successful execution of events like Disrupt and other TechCrunch gatherings.
Insight Media Group and Current Role
At Insight Media Group, Burns is responsible for directing editorial coverage and managing contributor programs across a portfolio of rapidly expanding technology publications.
The Resilience Conference
Burns is also the co-founder of the Resilience Conference, a unique event series focused on the convergence of defense, security, and innovative startup ventures.
He actively shapes the conference agenda, facilitates sessions, and spearheaded the creation of “Launch @ Resilience,” a platform dedicated to showcasing early-stage companies developing technologies for national defense.
Areas of Expertise and Notable Interviews
His reporting and moderation experience encompasses a wide range of technological fields, including AI, mobility, and frontier technologies. He frequently addresses the significant challenges faced by technology companies.
Burns has conducted interviews with prominent figures, including world leaders, leading investors, founders of innovative startups, and CEOs of publicly traded companies.
Background and Personal Interests
Originally from Michigan, with substantial experience in Silicon Valley, Burns combines a Midwestern perspective with a keen editorial sensibility.
Outside of his professional endeavors, he collaborates with teams to refine their messaging and validate their market entry strategies. He also enjoys camping near Lake Michigan when his schedule allows.