U.S. Senate Committee Approves Bipartisan Marijuana Banking Bill, Sending It To The Floor

The Senate Banking Committee has approved a bipartisan marijuana banking bill with amendments, sending it to the floor.

On Wednesday, members voted to pass the Secure and Fair Enforcement Regulation (SAFER) Banking Act, sponsored by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT), in a 14-9 vote. This comes one week after it was filed with revisions that were meant to bolster its bipartisan buy-in.

“It’s been quite a journey,” Committee Chairman Sherrod Brown (D-OH) said at the beginning of the meeting. “Regardless about how you feel about states’ efforts to legalize marijuana, this bipartisan bill is necessary. It will make it safer for legal cannabis businesses and service providers to operate, to protect their workers first and foremost and to operate in their communities.”

NEW: the SAFER Banking Act has passed the Committee with a bipartisan majority. Let’s get this bill to the floor to protect small businesses in the cannabis industry.

— Senate Banking and Housing Democrats (@SenateBanking) September 27, 2023

Sen. Steve Daines (R-MT), the lead GOP sponsor of the SAFER Banking Act, emphasized that he does not view the legislation as a step toward legalization, which he opposes. But “the current all cash model of legal cannabis businesses makes him targets for theft, for tax evasion and for organized crime,” he said.

“The key to addressing this risk is by ensuring that all legal businesses have access to the banking system,” Daines said.

The committee adopted an amendment from Brown making technical, clean-up changes that are considered non-controversial.

Watch the Banking Committee markup of the SAFER Banking Act in the video below: 

The panel also considered several amendments that were not ultimately adopted.

Amendments that the committee rejected: 

Sen. Raphael Warnock (D-GA): Sunset the SAFER Banking Act after five years unless the Department of Treasury, in consultation with other agencies, submits a report to Congress certifying that the measure has decreased the racial wealth gap and ameliorated other negative economic impacts of the War on Drugs

Sen. Mike Crapo (R-ID): Remove and replace Section 10 with language stipulating that federal regulators cannot pressure financial entities to “refuse to provide services to a lawful entity” unless that business is engaged in “unsafe and unsound practices.”

Amendments introduced and withdrawn:

Sen. Mike Rounds (R-SD): Sunset the bill if marijuana is federally rescheduled.

Amendments ruled not germane to the committee’s jurisdiction:

Sen. Bill Hagerty (R-TN): Prevent the “laundering of fentanyl and methamphetamine proceeds via marijuana sales.”

Amendments ruled out of order because the filing did not follow committee rules:

Sen. Raphael Warnock (D-GA): Require a Government Accountability Office (GAO) study within two years of enactment on the “racial wealth gap and the percentage of minority-owned cannabis-related businesses before and after the passage of the SAFER Banking Act,” according to a summary.

Members were expected to consider multiple additional amendments on issues such as cannabis industry access to stock exchanges and broad justice-focused marijuana reform and more. However, senators did not formally offer those proposals.

Warnock delivered a speech expressing concerns about the bill as drafted, arguing that it “will make life safer for bankers for businesses and financial institutions, some of whom have been profiting from the cannabis industry illegally for years.”

“I’m not opposed to easing or undoing federal restrictions around cannabis. And I would support all of the provisions and reforms in this legislation if paired with broader cannabis reforms that substantively addressed the issue of restorative justice,” he said. “This bill does not do that.”

Headed to the @SenateBanking hearing on the #SAFEBanking Act.

But it only makes wealthy cannabis investors “safer” to make more profit—it does nothing for the millions of Americans hardest hit by the War on Drugs.

Tune in now to hear my deep concerns: https://t.co/EGSSITZRJA

— Senator Reverend Raphael Warnock (@SenatorWarnock) September 27, 2023

Sen. Elizabeth Warren (D-MA) said she agreed with Warnock’s comments, though she said she’s supporting the underlying bill because it represents “common sense policy” and “a good step in the right direction to make federal cannabis law a little less out of touch with reality on the ground in states across this country.”

“Ultimately, we need to remove marijuana from the Controlled Substances Act altogether,” she said. “It makes no sense that marijuana remains a Schedule I drug while the state legal marijuana industry is booming. The communities that have borne the brunt of marijuana criminalization for decades should not be left behind.”

The road to Wednesday’s vote has been bumpy. While the House has passed earlier versions of the legislation several times, this marks the first time the Senate has taken the lead—and bipartisan negotiations have proved trying.

Leadership aimed to move the bill through committee in July, but disagreements over provisions related to broad banking regulations shot that timeline down. Then, over the August recess, lawmakers drafted a revised version, with a slightly updated title and new language that earned some praise from both sides of the aisle.

But the amended SAFER Banking Act that was finally released last week is likely not in its final form. Beside amendments adopted during Wednesday’s markup, there are additionally plans to amend it on the floor. Senate Majority Leader Chuck Schumer (D-NY) wants to use that opportunity to incorporate legislation on incentivizing state-level cannabis expungements, as well as protecting gun rights for marijuana consumers.

Senate Banking Committee Chairman Sherrod Brown (D-OH) predicted last week that the SAFER Banking Act will pass “decisively” out of his panel. In light of reporting on heightened tensions over certain provisions, that remains to be seen.

In a statement last week, Daines, the lead GOP sponsor, touted provisions of the legislation that he said would protect firearm and energy companies in Montana “from the Left’s woke agenda.” His office has also said that the senator is open to attaching the expungements provisions Schumer is proposing.

—Marijuana Moment is tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.—

Meanwhile, a group that represents state lawmakers across the U.S. urged Senate leaders this week to pass the SAFER Banking Act to provide a “much-needed solution” to the “unsafe and untenable” challenges that the cannabis industry faces under prohibition.

Last week, a coalition of 35 cannabis trade associations, drug policy reform groups and a top national labor union called on Congress to help address the “humanitarian toll” of robberies targeting cash-intensive marijuana businesses by passing the SAFE Banking Act “this year.”

The American Trade Association for Cannabis and Hemp (ATACH)—along with trade groups representing marijuana businesses in 16 states plus Washington, D.C.—also sent a letter to Brown and Banking Committee Ranking Member Tim Scott (R-SC) in July, imploring them to pass the cannabis banking bill “without further delay.”

Also, the American Bankers Association (ABA) also renewed its call for the passage of the legislation. And all 50 of its state chapters did the same, as did insurance and union organizations, in recent letters to congressional leadership.

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Schumer Says Work Continues On Marijuana Banking Bill As Key Senators Dispute Reason For Delay

Senate Majority Leader Chuck Schumer (D-NY) says that work continues to pass a bipartisan marijuana banking bill, and another Democratic senator is urging voters to keep up the pressure as lawmakers head back to their districts for the summer. But despite their optimism, a key committee chairman and the measure’s Republican top sponsor are still stuck in an intractable blame game.

Action on the Secure and Fair Enforcement (SAFE) Banking Act is on hold for at least a month as Congress breaks for the August recess—a disappointment for advocates and stakeholders who had hoped that the bill would advance during the summer session, as Schumer had planned as part of an ambitious legislative agenda. But the majority leader said “we’re working on it,” according to a lobbyist who briefly spoke with him twice on Wednesday.

Don Murphy of the Marijuana Leadership Campaign says that’s the simple response he got from Schumer after asking him in passing about the status of the legislation. Notably, Murphy told Marijuana Moment on Thursday, the leader declined to take an opportunity to pin blame on the GOP side for the delays after being asked what the “holdup” was.

“I’m looking for the silver lining, right?” Murphy said. “When the lead Democrat chooses not to blame Republicans, I take that as movement, as some progress.”

A new @SenateGOP in the Yea column. Lots of possible 9th GOP cosponsors. And @SenSchumer’s non-comment are all good news for #SAFEBanking’s future. pic.twitter.com/N0eZvgJw1d

— Don Murphy (@donmurphy12a) July 26, 2023

Marijuana Moment reached out to Schumer’s office for comment, but a representative was not immediately available.

Meanwhile, Sen. Jeff Merkley (D-OR) also spoke with Murphy on Thursday, and he gave some words of encouragement to SAFE Banking supporters advocating for the legislation, telling them to “keep it up” and emphasizing that “passing important legislation requires people outside the building continuing to weigh in.”

“I am optimistic that we’re going to work through the details when we come back from the August recess,” he said. “But the [Senate Banking Committee] needs to keep hearing your voices about how important this is so it becomes an issue that cannot be ignored in the press of other businesses.”

Sen. Jeff Merkley is "optimistic" that issues holding up his marijuana banking bill can be resolved when lawmakers reconvene in the fall—and he's urging supporters to pressure the Senate Banking Committee in the meantime. Video via @donmurphy12ahttps://t.co/35wp5K2Joypic.twitter.com/ohqZrZh81f

— Marijuana Moment (@MarijuanaMoment) July 27, 2023

The fact that Merkley urged supporters to reach out to the “committee,” rather than their individual senators, seems to be a reflection of a key political obstacle that kept the marijuana bill from advancing during the summer session. That is, the disagreement over next steps between Banking Committee Chairman Sherrod Brown (D-OH) and lead SAFE Banking Act cosponsor Sen. Steve Daines (R-MT).

The two senators have been engaged in a war of words for the past several weeks as frustrations mounted over a lack of a committee markup, with Brown insisting that Daines needs to secure more GOP cosponsors, and Daines arguing that Republicans are already prepared to move the legislation as previously agreed to through the floor.

Brown, who confirmed last week that the bill would not receive a vote this week, told Politico in a story published on Thursday that the GOP senator needed to build a broader Republican coalition around the bill to account for potential Democratic defectors who might pull their support unless one section is either removed or significantly amended.

That part of the bill, Section 10, was flagged by certain Democrats like Sen. Jack Reed (D-RI), who say it would undermine broader banking regulations. But for Republicans, changing it is considered a “non-starter.”

Daines told Politico that Brown’s comments about the need for more GOP cosponsors is “100 percent false.”

“The problem is not in Republican votes,” he said. “We had an agreement, but then they walked it back.”

Daines has also previously cautioned against attempting to expand the measure with social justice reforms that progressives would like to add, though his office has told Marijuana Moment that the senator is “open” to adding expungements language, as proposed by Schumer.

Brown, for his part, also told Politico that he doesn’t believe that his committee’s ranking member, Sen. Tim Scott (R-SC), would ultimately back the bill given the volatility of negotiations.

All told, it appears the Senate is adjourning for the next month without a substantive agreement—but with certain key players still hopeful about its prospects when they return. And supporters got another potentially meaningful sign that the momentum hasn’t entirely faded this week, as Sen. Dianne Feinstein (D-CA), who has historically resisted cannabis reform, signed on to cosponsor the SAFE Banking Act.

That raises the total number of cosponsors on the bill to 42, including eight Republican members.

—Marijuana Moment is tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.—

Meanwhile, the American Trade Association for Cannabis and Hemp (ATACH)—along with trade groups representing marijuana businesses in 16 states plus Washington, D.C.—sent a letter to Brown and Scott last week, imploring them to pass the cannabis banking bill “without further delay.”

In a Dear Colleague letter that was distributed this month, Schumer said that advancing SAFE Banking remains a legislative priority, but he also acknowledged that getting the job done “will not be easy” and require GOP buy-in.

Sen. John Cornyn (R-TX), meanwhile, said that the majority leader’s summer agenda was too ambitious, and he expressed serious doubts that marijuana banking—among a list of other legislative items that Schumer identified in the letter—would advance in the summer session. When it comes to cannabis, he was correct.

Schumer also recently spoke with a cannabis industry leader who approached him at an unrelated event last month, and according to that entrepreneur, the Senate leader is feeling “confident” about the prospects of passing the cannabis banking bill.

Sen. Tommy Tuberville (R-AL), for his part, said last month that he’s a “yes” on the legislation. He just doubts that Democratic leadership will follow through on their pledge to get the job done this year.

As its currently drafted, the measure would protect banks and credit unions, as well as depository institutions, from being penalized by federal regulators for working with state-licensed cannabis businesses.

Others have also floated other changes that they’d like to see incorporated into the cannabis bill such as expanding protections to free up marijuana industry access to all forms of financial services, including representation on major U.S. stock exchanges.

That request has faced some criticism from other advocates who say that would be an inappropriate move to help businesses while efforts to legalize marijuana stall in Congress.

A major cannabis lobbying firm apologized in May after sending a letter to Senate Banking Committee leadership concerning the banking bill that contained “inappropriate” references to investments from China in a “misguided attempt” to push for amendments expanding the legislation.

Sen. Jacky Rosen (D-NV) also recently said that she wanted the SAFE Banking Act to pass with an amendment allowing cannabis businesses to access federal Small Business Administration (SBA) services.

In April, Schumer said that he was “disappointed” that a so-called SAFE Plus package of cannabis reform legislation didn’t advance last year, saying “we came close,” but “we ran into opposition in the last minute.” He said lawmakers will continue to “work in a bipartisan way” to get the job done.

The majority leader has been holding meetings with Democraticand Republican members in the early months of the new Congress to discuss cannabis reform proposals that might have bipartisan buy-in this year.

Sen. Cory Booker (D-NJ) said recently that lawmakers are working to “resurrect” the cannabis reform package, acknowledging that failure to advance a banking fix for the industry “literally means that hundreds of businesses go out of business.

Rep. Earl Blumenauer (D-OR), who is a lead sponsor of the House version of the SAFE Banking Act, said at a recent press briefing that thinks it’s important that advocates and lawmakers align on any incremental proposals to end the drug war, warning against an “all-or-nothing” mentality.

The American Bankers Association (ABA) also recently renewed its call for the passage of the legislation. And all 50 of its state chapters did the same, as did insurance and union organizations, in recent letters to congressional leadership.

This month also marked the 10-year anniversary since the introduction of the first version of what is now known as the SAFE Banking Act.

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Photo courtesy of Chris Wallis // Side Pocket Images.

Senate Committee Chairman Says Marijuana Banking Bill Actually Won’t Get A Vote This Summer, Despite His Goal, Lobbyist Reports

A key Senate chairman says that a bipartisan marijuana banking bill will “not” get a committee markup next week, according to an advocate who spoke with him. And that means it will not be addressed during the summer session as leadership had hoped.

Lobbyist Don Murphy of the Marijuana Leadership Campaign said on Thursday that he spoke to Senate Banking Committee Chairman Sherrod Brown (D-OH), who told him that his panel will not be voting on the Secure and Fair Enforcement (SAFE) Banking Act before the start of recess beginning on July 31.

Time to make early vacation plans Twitter Friends… Chairman Brown on the prospect of a #SAFEBanking vote, “Not next week.” 😕

— Don Murphy (@donmurphy12a) July 20, 2023

Murphy told Marijuana Moment that he posed the question to Brown as the senator was leaving a hearing on Thursday, jokingly asking whether he should make vacation plans early or if SAFE Banking would be receiving a markup next week before lawmakers leave town for the summer. After the end of this month, the Senate isn’t scheduled to return until September 5.

The news comes as a disappointment for advocates and stakeholders, who were previously encouraged when Senate Majority Leader Chuck Schumer (D-NY) included the cannabis legislation in a list of legislative priorities for the summer session, even while he acknowledged that it would be challenging.

Brown himself said in early June that he hoped to hold a markup of the bill “in the next two or three weeks.”

More recently, though, there have been signs that senators had reached a temporary impasse over the bill, with Brown insisting that the GOP sponsor, Sen. Steve Daines (R-MT), find more Republican members to formally cosponsor the measure. Daines, meanwhile, said Republicans were ready to act on the SAFE Banking Act as introduced.

The hold up, according to insiders, is disagreement over one section of the bill that concerns broader banking regulations. Certain Democrats like Sen. Jack Reed (D-RI) have pushed to remove or alter Section 10, but one senior GOP staffer told Marijuana Moment that doing so would be a “non-starter” for Republicans.

As recently as Wednesday, a spokesperson for Daines told Marijuana Moment that “talks are continuing and we remain hopeful.”

But those talks apparently did not produce an actionable agreement in time for the summer session.

Marijuana Moment reached out to Brown’s committee staff to confirm Murphy’s report about the chairman’s new remarks, but a representative was not immediately able to provide comment or confirmation.

Rep. Dave Joyce (R-OH), the lead sponsor of the House version of the bill, said on Thursday that his chamber “has passed the SAFE Banking Act seven times with strong bipartisan support.”

“I am disappointed to see continued delays in the upper chamber and strongly encourage my colleagues in the Senate to act swiftly on this critical legislation,” he told Marijuana Moment.

Daines, for his part, has previously cautioned against attempting to expand the measure with social justice reforms that progressives would like to add, though his office has told Marijuana Moment that the senator is “open” to adding expungements language, as proposed by Schumer.

In a Dear Colleague letter that was distributed this month, Schumer said that advancing SAFE Banking remains a legislative priority, but he also acknowledged that getting the job done “will not be easy” and require GOP buy-in.

Sen. John Cornyn (R-TX), meanwhile, said last week that the majority leader’s summer agenda is too ambitious, and he expressed serious doubts that marijuana banking—among a list of other legislative items that Schumer identified in the letter—will advance in the summer session.

—Marijuana Moment is tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.—

For what it’s worth, Schumer also recently spoke with a cannabis industry leader who approached him at an unrelated event last month, and according to that entrepreneur, the Senate leader is feeling “confident” about the prospects of passing the cannabis banking bill.

Sen. Tommy Tuberville (R-AL), for his part, said last month that he’s a “yes” on the legislation. He just doubts that Democratic leadership will follow through on their pledge to get the job done this year.

As its currently drafted, the measure would protect banks and credit unions, as well as depository institutions, from being penalized by federal regulators for working with state-licensed cannabis businesses.

Others have also floated other changes that they’d like to see incorporated into the cannabis bill such as expanding protections to free up marijuana industry access to all forms of financial services, including representation on major U.S. stock exchanges.

That request has faced some criticism from other advocates who say that would be an inappropriate move to help businesses while efforts to legalize marijuana stall in Congress.

A major cannabis lobbying firm apologized in May after sending a letter to Senate Banking Committee leadership concerning the banking bill that contained “inappropriate” references to investments from China in a “misguided attempt” to push for amendments expanding the legislation.

Sen. Jacky Rosen (D-NV) also recently said that she wanted the SAFE Banking Act to pass with an amendment allowing cannabis businesses to access federal Small Business Administration (SBA) services.

In April, Schumer said that he was “disappointed” that a so-called SAFE Plus package of cannabis reform legislation didn’t advance last year, saying “we came close,” but “we ran into opposition in the last minute.” He said lawmakers will continue to “work in a bipartisan way” to get the job done.

The majority leader has been holding meetings with Democraticand Republican members in the early months of the new Congress to discuss cannabis reform proposals that might have bipartisan buy-in this year.

Sen. Cory Booker (D-NJ) said recently that lawmakers are working to “resurrect” the cannabis reform package, acknowledging that failure to advance a banking fix for the industry “literally means that hundreds of businesses go out of business.

Rep. Earl Blumenauer (D-OR), who is a lead sponsor of the House version of the SAFE Banking Act, said at a recent press briefing that thinks it’s important that advocates and lawmakers align on any incremental proposals to end the drug war, warning against an “all-or-nothing” mentality.

The American Bankers Association (ABA) also recently renewed its call for the passage of the legislation. And all 50 of its state chapters did the same, as did insurance and union organizations, in recent letters to congressional leadership.

Last week also marked the 10-year anniversary since the introduction of the first version of what is now known as the SAFE Banking Act.

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Photo courtesy of Philip Steffan.