Bill that Would Enable Banks and Insurance Companies to Provide Services to the Cannabis Industry Passes the House; Heads to the Senate

On September 25, 2019, the U.S. House of Representatives passed H.R. 1595, the Secure and Fair Enforcement (SAFE) Banking Act.  The legislation is intended to allow the cannabis industry to have access to financial services and to enhance public safety by reducing the industry’s reliance on cash.  It provides a safe harbor for financial services companies, including banks, credit unions, and insurers, to serve cannabis-related businesses operating under state law without the threat of regulatory backlash or criminal prosecution.

The House voted 321 to 103 to pass the bill.  The bill was supported in the House by 229 Democrats, 91 Republicans, and 1 Independent.

The legislation now advances to the Senate where its fate is uncertain.  A Senate version of the bill, S. 1200, is cosponsored by 31 senators, including 5 Republicans.  It is unclear whether that version of the bill will receive sufficient support to pass the Senate or even whether it will receive a floor vote.

We are continuing to track the progress of the SAFE Banking Act.

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