WASHINGTON–The House has passed the credit union-supported SAFE Banking Act.
The legislation, which would provide protection to credit unions and other financial institutions that serve cannabis-based businesses in states where it is legal, was passed as an amendment to the America COMPETES Act. The SAFE Banking Act would provide protection to credit unions, and other financial institutions, that serve cannabis-based businesses in states where it is legal.
“We thank House members for including this bill in the bipartisan America COMPETES Act. This bill addresses an important public safety issue by providing legal businesses access to financial services,” said Jim Nussle, president and CEO CUNA, which has long supported the SAFE Banking Act.
CUNA has long supported the SAFE Banking Act as it would prohibit federal regulators from penalizing depository institutions for serving legitimate marijuana-related businesses staff and other entities.
As CUToday.info reported earlier, after hopes had gone up in smoke that the SAFE Act would pass in the current Congress after it was removed from the National Defense Authorization Act, it got new life after its primary sponsor, Rep. Ed Perlmutter (D-CO), announced he would not be running for re-election.
“I think that adds an extra impetus for him and his allies to get it done,” said NAFCU VP-Legislative Affairs Brad Thaler, “particularly because the Democratic leadership wants to see it addressed.”
What's Different?
John McKechnie, senior partner with the Washington advocacy firm Total Spectrum, noting the legislation has passed the legislation for the sixth time since 2019, stated, “It’s logical for credit unions to ask ‘why will this time be different?’ Here’s why. Senate staff say (Sen. Chuck) Schumer and other Democrats are drafting a broad cannabis reform bill, which everyone acknowledges will fail. At that point, the SAFE Act becomes a compromise that sits between doing something that can’t pass and doing nothing. If that mindset takes hold in the Senate, it’s reasonable to expect action on SAFE this Fall, maybe as part of the National Defense Authorization Act (NDAA) again. And this time, SAFE stays in and becomes law. I don’t think that’s a pipe dream.”
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