A key Marijuana financing bill moves forward in the U.S. Senate

Cannabis stocks are in focus after the Secure and Fair Enforcement Regulation Banking Act moved forward in the upper chamber of Congress on Wednesday.

What the renegotiated SAFER means for cannabis companies

The bill will enable financial institutions including banks to serve the state-legal marijuana companies without the risk of a federal crackdown.

Simply put, the renegotiated SAFER that moved ahead in the Senate this morning wants the said businesses to be able to access banking services. Sen. Sherrod Brown – Chairman of the Senate Banking Committee said in a press release today:

This bipartisan bill is necessary – it’ll make it safer for legal cannabis businesses and service providers to operate in their communities and protect their workers.

Senate had never considered this legislation before today

On Wednesday, fourteen members of the Senate Banking Committee recommended the renegotiated Secure and Fair Regulation Banking Act while nine voted against it.  

It’s the first time that the legislation has advanced through the upper chamber. The U.S. House of Representatives passed the SAFE Banking Act – an earlier version of this bill “seven times” and yet it never made it through the Senate.  

Note that 39 states have already legalised cannabis for medical or even recreational use. But federal prohibition and classification of Marijuana as a Schedule I substance makes it increasingly challenging for the industry to access financing.

Last month, the U.S. Department of Health and Human Services recommended that the Drug Enforcement Administration reclassifies Marijuana as a Schedule III drug as Invezz reported here.