A renegotiated bill that would allow banks and financial institutions to work with state-legal cannabis businesses — free from the risk of federal penalties — has cleared a significant legislative hurdle in the US Senate.
The Senate Committee on Banking, Housing and Urban Affairs voted decisively to pass the updated SAFER (Secure and Fair Enforcement Regulation) Banking Act, making it the first time Senate members have cast votes in support of the legislation.
The bill must now move through the full Senate and House for further debate, proposed amendments, and votes before it can reach President Biden's desk for approval.
Despite drawing support from both sides of the aisle, the legislation's path forward could be derailed by a potential government shutdown next month.
Senior vice president of public affairs at the US Cannabis Council David Culver told MJBizDaily: "If there's a shutdown, we can reasonably expect that to slow down progress on Capitol Hill across the board. I'm not going to sugarcoat it, the shutdown is not good for SAFE."
The previous week, Democratic Senate majority leader Chuck Schumer had joined a bipartisan group of legislators to unveil a revised version of what was previously known as the SAFE Banking Act.
The legislation, which would open up the US financial system to cannabis companies, has repeatedly appeared close to advancing before hitting roadblocks as it moves through the legislative process.
Separately, in Wisconsin, senior Democrats have introduced a bill that would legalise cannabis for adult consumers and eligible medical patients. Senate leader Melissa Agard argued that without legalisation, tax revenue is flowing to neighbouring states where cannabis is already legal.
"Right now, we are seeing our hard-earned money go across the border to Illinois, Michigan, and Minnesota to the tune of tens of millions of dollars each year," she said.
"That is money we could be reinvesting to help support our friends and neighbours and make our state a place where people want to live, work, and play.
"Let's join folks in over half the nation who have said 'yes' to putting the half-baked politics of prohibition behind us and set our expectations higher."
Democratic Governor Tony Evers is widely expected to back the measure, having already included legalisation provisions in his proposed state budget earlier this year — provisions that were subsequently stripped out by the legislature.