A U.S. Senate committee on Wednesday voted to advance a marijuana banking bill, raising hopes for the cash-dependent cannabis sector to get access to regular banking services.
Most banks in the country do not service cannabis companies as marijuana remains illegal at the federal level despite several states legalizing its medicinal and recreational use.
The Secure and Fair Enforcement Regulation Banking Act (SAFER) bill, introduced by a bipartisan group of senators last week, will now move to the Senate floor.
COMMENTS
JEFF MERKLEY, SENATOR FROM OREGON
"Forcing legal businesses to operate in all-cash is dangerous for our communities ... passing the SAFER Banking Act through committee is a historic moment in this body."
KIM RIVERS, CEO, TRULIEVE CANNABIS
"At this juncture, we believe this piece of legislation is ready for prime time after having had seven votes out of the House in the past. Realizing this first vote out of the Senate signals strong bipartisan support from both chambers of congress."
DAVID KLEIN, CEO, CANOPY GROWTH
"The American people overwhelmingly support legal cannabis and today's bipartisan vote as well as continued progress on state-level legalization demonstrates the industry's momentum."
BEN KOVLER, CEO, GREEN THUMB INDUSTRIES
"Incorporating critical provisions such as expungement when bringing this bill to the floor is a significant milestone, acknowledging the devastating implications of cannabis prohibition and the failed War on Drugs, which has disproportionately impacted Black and Brown communities for decades."
CURALEAF HOLDINGS
"We have seen this positive first step towards banking reform seven times before, and each time we have fallen short of success. We urge our congresspersons on both sides of the aisle to listen to the voices of their constituents and enact this critical legislation."
PATRICK O'BOYLE, CEO, DAMA FINANCIAL
"With the industry poised to reach $34 billion by the end of this year, the implications of more accessible financial services will be transformative and will attract further investment and innovation, especially when considering the HHS's recent recommendation to reclassify cannabis as a Schedule III substance."
MORGAN PAXHIA, MANAGING DIRECTOR AND CO-FOUNDER, POSEIDON INVESTMENT MANAGEMENT
"We believe it is important that capital markets be included if the government believes in true banking reform and we will see what happens next in the currently volatile House."
DAVID GOUBERT, CEO, AYR WELLNESS
"Cannabis operators of all sizes deserve fair treatment by the federal government, and this important bill represents a simple but crucial step closer towards that goal."
ED SCHMULTS, CEO, STATEHOUSE
"By pulling the cash component out of businesses and into banking institutions, SAFER should, in theory, eliminate the public safety risk related to the all-cash nature of the cannabis industry."
"The final language of the bill reflects a tough negotiation that has spanned years and several legislative sessions. While we are happy to see SAFER finally move forward, we understand there is much more work to be done to address the harm caused by the failed War on Drugs."
JESSE REDMOND, HEAD OF CANNABIS SECTOR, WATER TOWER RESEARCH
"Investors also realize that getting to Schedule III is a larger catalyst and are eagerly anticipating the DEA's response to the HHS recommendation. There are multiple political catalysts in play and the industry is excited about the potential to finally make progress in Washington."
GEORGE ARCHOS, CEO, VERANO
"The progression of the SAFER Act is a long overdue step forward by our elected officials to recognize the countless benefits this incredible plant provides and finally take decisive action to support the will of their constituents to further the development of this growing industry, while also creating opportunity for increased investments, job creation and revenue."
(Reporting by Tanay Dhumal, Sourasis Bose and Bansari Mayur Kamdar in Bengaluru and Doina Chiacu in Washington; Editing by Shounak Dasgupta)
