Cannabis Banking Reform Faces Political Roadblocks Amid Bipartisan Push
Efforts to advance the Secure and Fair Enforcement Regulation (SAFER) Banking Act, which would provide financial protections for cannabis businesses, have been stymied by Republican leadership in both chambers of Congress, according to Senate insiders.
The impasse threatens the bill's passage during the lame-duck session, despite bipartisan support and significant economic implications.
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Key Developments
Republican Leadership Opposition
Senate Minority Leader Mitch McConnell (R-KY) and House Speaker Mike Johnson (R-LA) reportedly rejected Senate Majority Leader Chuck Schumer’s (D-NY) push to include the SAFER Banking Act in a continuing resolution (CR) to fund the government.
A Senate source accused GOP leaders of consistently blocking the measure despite public claims of support from some Republicans.
Mixed Republican Responses
Sen. Steve Daines (R-MT), the Republican lead sponsor of the bill, remains optimistic about passing the legislation before year’s end.
Sen. Thom Tillis (R-NC) criticized the SAFER Banking Act as inadequate, advocating instead for comprehensive federal cannabis regulation.
Other GOP senators, including Senate Majority Leader-elect John Thune (R-SD), have expressed opposition to the measure, complicating its pathway in the next Congress.
Democratic Frustrations
Sen. Elizabeth Warren (D-MA) and other Democrats have accused certain Republicans of overstating their caucus's support for the bill.
Schumer remains committed to advancing the bill but faces challenges in securing the necessary 60 votes to overcome a Senate filibuster.
Economic and Policy Implications
Potential Benefits of SAFER Banking Act
The Congressional Budget Office (CBO) projects billions of dollars in federally insured deposits from cannabis businesses if financial institutions are protected from federal penalties.
The bill could provide vital banking services to state-legal cannabis industries, boosting small businesses and ensuring greater regulatory compliance.
Barriers to Passage
The reluctance of Republican leaders and some Democrats to prioritize the bill has left its future uncertain
Critics argue that failure to advance the measure now could harm its long-term prospects, especially under a Republican-controlled Senate in the next Congress.
A Broader Reform Agenda
Trump's Evolving Position
President-elect Donald Trump has endorsed cannabis banking reform and federal rescheduling in recent statements, signaling a policy shift compared to his first term.
Advocates argue that Trump could leverage his influence to rally Republican support for the SAFER Banking Act.
Calls for Legislative Action
Rep. Earl Blumenauer (D-OR) and other cannabis reform advocates have urged Congress to act, emphasizing the bipartisan benefits for veterans, law enforcement, and small businesses.
Blumenauer highlighted that cannabis banking reform aligns with public sentiment and economic needs, calling it “never too late to do the right thing.”
Outlook
The SAFER Banking Act represents a critical step toward modernizing cannabis policy in the U.S., but its success depends on overcoming entrenched partisan divides. Advocates warn that failure to act during the lame-duck session could delay reforms indefinitely, despite growing public and industry support.
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