Risk Management

House approves pro-cannabis banking bill

Matthew Lerner

April 20, 2021 Reprints

Cannabis P/C Insurers More + Less -

The U.S. House of Representatives on Monday night passed H.R. 1996, Secure and Fair Enforcement Banking Act of 2021, or the SAFE Banking Act of 2021.

The bill would prohibit federal banking regulators from penalizing banks and other depository institutions for providing banking services to cannabis businesses. The legislation passed on a 321-101 chamber vote.

The legislation had previously passed the House with bipartisan support in 2019, but was ignored by the Republican-controlled Senate. Senators Jeff Merkley, an Oregon Democrat, and Steve Daines, a Montana Republican, have introduced a Senate companion bill that now has 32 co-sponsors.

The American Property Casualty Insurance Association lauded the news and urged the Senate to act.

“APCIA commends the House for providing greater certainty surrounding the insurance marketplace for cannabis-related legal businesses and consumers adhering to state laws. This legislation addresses the legal uncertainty created by the dueling state and federal treatment of cannabis. While marijuana is illegal under the federal law, thirty-six states and the District of Columbia have legalized some form of marijuana.

“We applaud Representatives Perlmutter, Stivers, Velazquez, and Davidson for their steadfast leadership. We encourage the Senate to take up and pass the SAFE Banking Act, as soon as possible.”

There is also optimism around the passage of a similar bill aimed at the insurance industry, The Clarifying Law Around Insurance of Marijuana Act of 2021.