420 with CNW – A Historic Vote Approves the Marijuana Banking Bill in the House

September 27, 2019 15:20:48

On Wednesday, the House of Representatives made history by passing a standalone cannabis reform bill. The bill aims to protect financial institutions and ancillary firms that provide services to legitimate marijuana companies in the United States. The legislation would guarantee stability and security to the multibillion-dollar marijuana industry as well as ensuring public safety.

A vote of 321 passed The Secure and Fair Enforcement (SAFE) Banking Act. All Democrats but one voted for the bill while  91 Republicans voted for the bill and 102 opposed it. For the bill to pass, it required a two-thirds majority of the House to vote for it.

In the United States, recreational marijuana is legal in eleven states, including the Columbian District. Moreso, most of the states in the U.S have legalized the use of medical marijuana. However, at the federal level, marijuana is still considered illegal, making financial institutions and credit unions dread conducting business with marijuana businesses out of fear of being prosecuted or facing the consequences of not abiding by the regulations.  The SAFE Banking Act will protect these institutions from the effects of conducting business with marijuana companies and enterprises.

In March, the bill moved out of the House Finance Committee. Before the vote on Wednesday, the bill had tallied 200 sponsors of which 26 were Republicans. Several national banking groups are supporting the bill by pushing Congress to take action. These groups include American Bankers Association, Independent Community Bankers of America, and the Credit Union National Association. The National Association for State Treasurers, plus state attorneys general and governors from 20 different states all urged Congress to approve the bill.

Although some human rights groups are against the bill claiming that it would be a hindrance to other reforms and federal legalization; the cannabis trade groups, some human right groups, and people advocating for marijuana legalization are in favor of the bill.

Neal Levine, the CEO of the Cannabis Trade Federation (CTF), said that the federation applauds the House for passing the SAFE Banking Act and that they hope that the Senate will follow suit. He also said that the bill benefits the cannabis businesses and the communities that have chosen to embrace cannabis legalization. The Bill allows weed businesses to access banking services; thus, eliminating their reliance on cash. This will, in turn, improve safety within the community, transparency within the industry and adherence to cannabis-related regulations.

It is still not clear if the bill will be approved in the Republican-controlled Senate, but experts are in agreement that industry participants, such as Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) and Willow Biosciences Inc. (CSE: WLLW), are keeping their fingers crossed hoping that the upper chamber also passes the bill.

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