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.
Robert Vacchiano is an associate in Saiber LLC’s Insurance and Reinsurance practice group. Robert concentrates his practice on representing insurers and reinsurers in a variety of complex litigation matters. In addition, Robert has assisted clients in disputes involving breach of contract, fraud, discrimination, the Federal Civil Rights Act, consumer protection statutes, professional malpractice, construction defects, software licensing, land use, bankruptcy, and pension benefits.
As a recreational cannabis bill in the New Jersey legislature stalls, federal legislation directed at expanding the cannabis industry’s access to banking and insurance services advances in Congress. On March 28, 2019, the U.S. House of Representatives Committee on Financial Services approved H.R. 1595, the