Cannabis Banking Reform Waits For 2023 But There Is Republican Interest, Sen. Brown Says

Senate Democrats are hoping to pass the Secure and Fair Enforcement Banking Act of 2021 (SAFE Banking Act) so it can move to the U.S. House and land on President Joe Biden’s desk in the near future.

However, Senate Banking Committee Chairman Sherrod Brown recently said the measure might be on hold until the next Congress in 2023.

The Ohio Democrat expects to “take it [SAFE Act] up and get it through” in 2023, adding that “there’s interest in the Republican House,” according to Punchbowl News’s Brendan Pederson.

See Also: Booker Blasts McConnell For Halting Marijuana Reform And Saying 'Poison Pills' Shouldn't Be Part Of Bill

New: I asked Senate Banking Chair Sherrod Brown about cannabis banking reform, and Brown said wants to "take it up and get it through" in 2023, adding: "there's interest in the Republican House"
This is definitely the most supportive I've heard Brown be on SAFE Banking.

— Brendan Pedersen (@BrendanPedersen) December 15, 2022

The senator would “still like to see the reform included in the general appropriations legislation this year, as long as it contains additional provisions he supports,” Brown's office told Marijuana Moment.

Brown also expressed interest in the SAFE Plus Package, saying "it’s expected to go beyond simple banking reform and also contain other provisions dealing with expungement."

Additionally, Brown would support SAFE Plus in an omnibus bill.

“SAFE Plus includes provisions Senator Brown supports, such as clarity for [community development financial institutions] and for cannabis workers regarding mortgages,” according to a statement.

An Analyst’s View

Democrats will still try to attach SAFE to the Omnibus, no matter what Senate Minority Leader Mitch McConnell said, Cantor Fitzgerald analyst Pablo Zuanic believes.

“The bigger issue, however, is more about whether the two parties can agree on what the actual Appropriations Bill (Omnibus) looks like. All that said, we still believe the easier path is to go standalone,” noted Zuanic.

Finally, when it comes to investing, taking a one to two-year view, Zuanic says larger multi-state operators (MSOs) are the best options. Not ETFs necessarily, which are well capitalized and could also profit if SAFE doesn’t pass, thanks to the industry consolidation.

See Also: 'I'll Be SMOKIN'! WOOOOO!' - Ric Flair, Mike Tyson Share A Blunt During Business Conference

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Image By Benzinga