Optimism Runs High As Marijuana Banking Bill Heads To Senate For Consideration

As Senate lawmakers prepare to consider a marijuana banking bill this week, Majority Leader Chuck Schumer (D-NY) said he's optimistic the proposed policy change will become law.

Cannabis Banking Hearing Ahead: A Senate Banking Committee hearing on cannabis banking issues and the Secure and Fair Enforcement (SAFE) Banking Act of 2023 is scheduled to take place on Thursday, May 11. A group of bipartisan lawmakers, including Senators Jeff Merkley (D) and Steve Daines (R), along with Representatives David Joyce (R) and Earl Blumenauer (D), reintroduced a marijuana banking bill last month.

If the bill reaches the floor, Schumer said they would also address expungement of the records for those who had been previously affected by marijuana criminalization.

'We Now Have Momentum': “We need to do social justice and attach it to the SAFE Act and pass it together,” the Senate majority leader said at the NYC Cannabis Parade & Rally (NYCCPR) on Saturday.

“So I’m with you all the way. I can’t wait when we’ll come back and celebrate here in Union Square in the near future and say cannabis is legalized in all of the United States of America.”

The cannabis banking bill has bipartisan support, Merkley said recently, highlighting Schumer’s advocacy efforts, reported Live 5 News.

“We now have momentum in that we have quite a substantial number of Republicans on the bill,” he said. "We have 40 sponsors. We have the support of the Majority leader. We’ve been working very closely with the chair of the Banking Committee, where this bill will go next. And so, the path is looking (like) the best opportunity we’ve ever had.”

The American Bankers Association (ABA) and the State Bankers Association, representing banks of all sizes from every state, also support the policy reform. The organizations have urged lawmakers for years to pass the legislation allowing banks to handle the proceeds from state-licensed cannabis businesses.

Concerns At State Level: Despite overwhelming support, some still have doubts about the impact of the legislation at the state level.

The Vermont Cannabis Control Board said more needs to be done in addition to banking reform, such as reducing deposit fees, before small merchants and cultivators start to bank their profits, reported WCAX.

To that end, the state’s Department of Financial Regulation said that banks considering entering the space should reach out.

“In the last few weeks, we have already engaged two institutions that had some questions about setting up a program, so there is interest out there and we would be willing to continue to work with any institution that is looking to do so,” said Aaron Ferenc, the deputy commissioner of the Vermont Department of Financial Regulation.

Photo: Courtesy of Kindel Media by Pexels.