Perlmutter Files Cannabis Banking Amendment To America Competes Act

Statement

U.S. Rep. Ed Perlmutter CO-07) today filed the SAFE Banking Act as an amendment to the America COMPETES Act of 2022. The SAFE Banking Act is landmark legislation that would allow marijuana-related businesses in states with some form of legalized marijuana and strict regulatory structures to access the banking system and reduce the public safety risk in communities across the country.

To date, the SAFE Banking Act has passed the U.S. House five times, most recently in September 2021 as an amendment to the FY22 National Defense Authorization Act. Previously, the SAFE Banking Act passed the House by a vote of 321 to 101 on April 19, 2021, with 106 Republicans voting in support. Despite having significant support in the Senate with 40 bipartisan cosponsors, the legislation has continued to stall in the U.S. Senate.

"Cannabis-related businesses -- big and small -- and their employees are in desperate need of access to the banking system and access to capital in order to operate in an efficient, safe manner and compete in the growing global cannabis marketplace. The SAFE Banking Act is the best opportunity to enact some type of federal cannabis reform this year and will serve as the first of many steps to help ensure cannabis businesses are treated the same as any other legal, legitimate business," said Perlmutter. "I will continue to pursue every possible avenue to get SAFE Banking over the finish line and signed into law."

Forty-seven states, four U.S. territories, and the District of Columbia -- representing 97.7 % of the U.S. population -- have legalized some form of recreational or medical marijuana, including CBD. Yet current law restricts legitimate licensed marijuana businesses from accessing banking services and products, such as depository and checking accounts, resulting in businesses operating in all cash. This is a serious public safety risk for communities, inviting theft, robberies, and burglaries.

Additionally, the U.S. cannabis industry continues to grow at a rapid rate, with the current value estimated at $17.7 billion, a substantial amount of which remains unbanked. As of January 2021, the legal cannabis industry supports 321,000 jobs across the country. The legal U.S. cannabis market is projected to reach $30 billion by 2025.

The SAFE Banking Act of 2021 is also championed and cosponsored by U.S. Reps. Warren Davidson (R-OH), Nydia Velazquez (D-NY), Earl Blumenauer (D-OR), Barbara Lee (D-CA), and David Joyce (R-OH).

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