A new survey showing that American consumers support cannabis banking is one more reason why the Safe Banking Act should be approved by Congress, says U.S. Rep. Ed Perlmutter (D-CO).
“More evidence of the overwhelming support for #SAFEBanking,” Perlmutter tweeted March 8 following release of the American Bankers Association (ABA) survey conducted by Morning Consult showing that 68 percent of respondents say Congress should act on the bipartisan Secure and Fair Enforcement Banking (SAFE) Act of 2021, H.R. 1996.
If enacted, the measure would prohibit a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business. Perlmutter, who sponsored H.R. 1996 last March, has contended for years that the cash-only marijuana industry is ripe for crime and needs to become financially safer.
“The money from cannabis businesses and its employees belongs in the bank. Let’s get it there. Let’s pass #SAFEBanking,” Perlmutter tweeted on Tuesday.
The survey, conducted in mid-February among a national sample of 2,210 adults and unveiled this week during ABA’s 2022 Washington Summit, examined consumer views on cannabis banking, as well as on topics related to whether U.S. consumers are happy with their bank and value overdraft protection.
Regarding cannabis banking, a strong majority of U.S. adults (65 percent) support allowing cannabis businesses to access banking services such as checking accounts and business loans in states where cannabis is legal; 15 percent are opposed to that idea, according to the ABA.
Likewise, seven in 10 respondents support Congress passing legislation that allows cannabis businesses to access banking services like checking accounts and business loans in states where cannabis is legal, ABA says.
“Consumers clearly agree that now is the time to resolve the ongoing conflict between state and federal law so banks can serve legal cannabis and cannabis-related businesses,” said ABA President and CEO Rob Nichols in a statement. “Doing so will help banks meet the needs of their communities while enhancing public safety, increasing the efficiency of tax collections, and improving the financial transparency of the cannabis industry.”
During an ABA summit session earlier this week, Perlmutter offered recent examples of public safety issues that could be resolved with passage of the SAFE Banking Act in a discussion he had with James Ballentine, ABA’s executive vice president for congressional relations and legislative affairs.
For instance, Perlmutter said that in one week during November 2021 in Oakland, Calif., there were 25 armed robberies of cannabis dispensaries. “The same thing has been happening around the country because it’s seen as easy pickins’. The money belongs in the banks where you guys can protect it,” Perlmutter told the ABA audience.
H.R. 1996, which has 180 cosponsors from both sides of the aisle, on Jan. 31 received approval from the U.S. House of Representatives as an amendment included in the larger America COMPETES Act, sweeping legislation that would bolster the nation’s competitiveness with China and address the country’s shortage of semiconductors.
“I’m glad to see it included in the America COMPETES Act and I will keep pushing to ensure it remains in the final package negotiated with the Senate,” Perlmutter said following the House vote.
The House approval marks the sixth time the chamber has passed the bill, most recently in December 2021 as part of the fiscal year 2022 National Defense Authorization Act. But despite significant support in the Senate, where that chamber’s version has 41 bipartisan cosponsors, the bill still has not been taken up for consideration.
SAFE Banking Act supporters are confident that will change, however, as policymakers in both the House and Senate are trying to reconcile the America COMPETES Act and its Senate counterpart, the United States Innovation and Competition Act.
Perlmutter said that conversations with Senate leadership about amending his bill are ongoing, particularly regarding equity issues supported by U.S. Senate Majority Leader Chuck Schumer (D-NY), who supports a more comprehensive cannabis legalization bill that goes beyond banking issues.
“37 states and DC legalized cannabis for medical use; 18 states and DC legalized both medical and adult use. It’s past time the federal government caught up,” Schumer tweeted March 10.
“Comprehensive federal cannabis reform with equity for communities most impacted by the War on Drugs is a top Senate priority.”