ABA And State Bankers Association Letter to the Senate: Support SAFE Banking In America COMPETES Act

The American Bankers Association (ABA) and the State Bankers Association, which represent banks of all sizes from every state in the country, sent a letter to Senate leaders asking them to include the Secure and Fair Enforcement (SAFE) Banking Act, in America COMPETES Act, an innovation and manufacturing bill.

“We write to ask you to include the Secure and Fair Enforcement Banking Act, (“SAFE Banking”) in the House-Senate conference version of the America COMPETES Act,” the banking groups stated in a press release on Thursday.

“The SAFE Banking Act is an urgently needed, and widely supported, bipartisan legislative solution to allow banks to handle the proceeds from state-licensed cannabis businesses (...) this industry is operating primarily in cash, which causes significant public safety concerns and undermines the ability of cannabis regulators, tax collectors, law enforcement and national security organizations to monitor the industry effectively,” the groups wrote.

The letter describes the SAFE Banking Act as a “narrowly tailored solution designed to bring this growing industry into the regulated banking system and provide much-needed visibility into its financial activity”.

They also noted the benefits of formalizing the industry. “The increased transparency that would come from processing transactions through bank accounts instead of in cash would ensure that regulators and law enforcement have the necessary tools to identify bad actors and remove them from the marketplace. The legislation would also enhance tax collection in the states where cannabis is now legal,” added the bankers' groups.

“With state-licensed cannabis businesses currently operating in 37 states and more states weighing legalization, we urge you to include the SAFE Banking Act in the compromise version of the COMPETES Act to address these critical issues as quickly as possible,” concluded the letter.

Reps. Ed Perlmutter (D) and Earl Blumenauer (D) sent a letter to the bicameral conference that will be discussing the America COMPETES Act on Wednesday, asking to do the same.

Image Via El Planteo.