Bipartisan Letter From 34 AGs May Not Sway Senate On SAFE Banking

Last month, 34 state attorneys general wrote Congress urging that the SAFE Banking Act be included in the COVID-19 stimulus package working its way through Capitol Hill.

The letter cited public safety and the need for banking access as core reasons why legislation must pass.

As the debate between Senators rolls on, the cannabis industry doesn’t have a consensus on the letter’s efficacy.

'Little Credible Opposition' To SAFE Banking Act: The letter is "evidence that the SAFE Banking Act is not just pro-banking or pro-cannabis, but pro-law and order as well," Marijuana Policy Project Federal Policies Director Don Murphy told Benzinga. 

Only a few Senators are needed to flip the vote, he said, adding that if it comes to fruition, the letter should receive immense credit.

"It brings law enforcement to our side of the table," he said of the cannabis legislation.  

"There's very little credible opposition to SAFE Banking now."

Kim Rivers, CEO of Trulieve Cannabis Corp. TCNNF, echoed similar support for the bill and its benefits for patients, businesses and law enforcement.

"The patchwork style of regulations and enforcement has created an unclear and unfair system, and the lack of federal protection for financial institutions that serve the cannabis industry only complicates an already complicated system," Rivers said.

Justin Strekal, political director for the National Organization for the Reform of Marijuana Laws, agrees. 

The letter resembles one from 2019, which urged reform as well.

“It's like water over rock, where we're slowly building more support and slowly building more power,” he said. 

This 2020 letter saw 13 more AGs sign on, and despite the growing support, other barriers are at play.

The Democratic Party hasn’t done much to advance legislation to date, Strekal said. The lack of substantive action is coupled with Republican Senate Majority Leader Mitch McConnell and Senate Banking Committee Chairman Mike Crapo acting as what he considers "gatekeepers.”

"[Sen. McConnell] has given me no indication he seems eager to advance the banking bill," said Strekal, calling McConnell's recent comments about including SAFE Banking’s inclusion in the HEROES Act "troubling."

What’s Next For Cannabis America: Legislation will continue to be advanced at the state level, said Karen O'Keefe, the Marijuana Policy Project's director of state policies.

O'Keefe said that despite the setbacks posed from COVID-19, progress could still come in several states.  

"There are a number of ballot measures that we still expect this year.” O’Keefe added, “And there are a couple of state legislatures that could still enact bills this year as well."

NORML’s Strekal does not expect reform at the federal level to occur in 2020, but year, but said a similar letter from AGs across the U.S. will likely continue to arrive every year until the bill passes.

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