SEATTLE—The CEO of one of the first credit unions in Washington to serve the cannabis industry said passage of the SAFER Banking Act––which would remove many of the federal prohibitions on providing financial services to cannabis companies and workers––is at a critical juncture.
In an op-ed in Marijuana Moment, Russell Rosendal, CEO of Salal Credit Union, said the lack of access to financial services has “forced many legitimate businesses to operate in the shadows, while their employees are excluded from mainstream banking services.”
Passage of the Secure and Fair Enforcement Regulation (SAFER) Banking Act would be a step forward, he said.
The SAFER Banking Act is the follow-up legislation to the SAFE Banking Act, which languished in Congress for many years. The SAFER Act in September was passed out of the Senate Banking Committee on a 14-9 vote.
A ‘Paramount’ Moment
“Now, it stands at a critical juncture where advocacy, citizen involvement and national lobbying efforts are paramount,” wrote Rosendal. “While individuals and organizations have been advocating for responsible federal policies—including banking and regulatory oversight—ever since legal state markets began to emerge, there is now a rare window of bipartisan support for the SAFER Act. Key senators have voiced their support, making this a pivotal moment to push for this legislation.”
What Legislation Would Do
According to Rosendal, passage of the law would create:
- Less tension between federal and state law.
- A safe harbor for banking payments.
- Expanded protection for insurers.
- Provide for mortgages and access to capital for employees of cannabis businesses.
- The removal of regulatory uncertainties for related businesses.
- The elimination of the illicit markets
Far-Ranging Implications
“The implications of safe banking and regulatory reform also extend far beyond the balance sheets of businesses,” wrote Rosendal in Marijuana Moment. “These reforms would also enhance issues of public safety, transparency and the ability to operate like any other legitimate industry.”
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