Cortez Masto Cosponsors Bipartisan Cannabis Banking Reform

Washington, D.C. - U.S. Senator Catherine Cortez Masto (D-Nev.) joined Senator Jeff Merkley's (D-Ore.) in re-introducing legislation to ensure legal cannabis businesses can access traditional and secure banking systems and financial services. The Secure and Fair Enforcement (SAFE) Banking Act would provide a create a legal framework for banking and financial services to serve state-legal cannabis businesses, reducing the need for cash-only transactions, and improving public safety.

"We must make sure that businesses in states where marijuana is legal - like Nevada - have access to bank accounts and other financial services," said Senator Cortez Masto. "I'm proud to support this legislation that will help Nevada small businesses and make our communities safer in the long run. It's time to finally get this bill done."

The SAFE Banking Act would protect banks and their officers who provide financial services to legitimate, state-sanctioned cannabis businesses from criminal prosecution and liability and asset forfeiture, while maintaining banks' right to choose not to offer those services. It would also provide protections for hemp and hemp-derived cannabidiol (CBD) related businesses and require banks to comply with current Financial Crimes Enforcement Network (FinCEN) guidance. Additionally, this bill would prevent federal banking regulators from:

• Prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as a lawyer or landlord providing services to a legal cannabis business);
• Terminating or limiting a bank's federal deposit insurance primarily because the bank is providing services to a state-sanctioned cannabis business or associated business;
• Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; and
• Taking any action on a loan to an owner or operator of a cannabis-related business.

Read the bill here. The SAFE Banking Act is also co-sponsored by Senators Lisa Murkowski (R-Alaska), Steve Daines (R-Mont.), and Elizabeth Warren (D-Mass.), Dan Sullivan (R-Alaska), Kevin Cramer (R-N.D.) and Patty Murray (D-Wash.). The House companion is led by Congressman David Joyce (R-Ohio-14).

Senator Cortez Masto first introduced this legislation with Senator Merkley and Senate colleagues in 2017, and she has repeatedly pushed for action on the bill. Last Congress, she highlighted one Nevada business owner who said that the lack of access to traditional banking is so burdensome and dangerous that she often fears for her safety and that of her employees.

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