What is the SAFE Banking Act?
![A clenched fist holding a marijuana joint in front of the U.S. Capitol](https://cdn.mos.cms.futurecdn.net/QKerujrCo3z2bSNSh3HvmC-415-80.jpg)
Cannabis industry advocates and executives had their hopes dashed once again after Senate Minority Leader Mitch McConnell (R-Ky.) blocked the SAFE Banking Act from Congress' $1.7 trillion omnibus spending bill, The Hill reports. This is the third time the bill has failed to get through the Senate, a blow to an industry that grows larger yearly.
The Secure and Fair Enforcement (SAFE) Banking Act is a bipartisan bill that would reverse federal restrictions blocking cannabis business owners from accessing financial services. Even though 37 states have legalized or decriminalized marijuana, the drug remains illegal on the national level. Because of this, cannabis business owners face an uphill battle when trying to secure banking services. Banks and other financial institutions that process funds for cannabis companies are at risk of being charged with money laundering, and federal regulatory agencies could also impose fines and penalties for violating federal laws.
Despite bipartisan support for the bill in both chambers, McConnell has been adamant about not allowing it to advance. He first blocked the act from inclusion in the defense bill earlier this month, claiming it would make the nation's financial system "more sympathetic to illegal drugs," per The Hill.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Supporters of the SAFE Banking Act warn that failure to pass it could negatively affect the cannabis industry. Without access to financial institutions, most cannabis businesses operate cash-only establishments, which puts them at risk of robbery and encourages the proliferation of the illegal market.
"Not only did the Senate squander a chance to score a bipartisan victory this year," said Khadijah Tribble, CEO of the U.S. Cannabis Council, "its inaction threatens public safety and undermines the progress states are making in mending the racial inequities of the war on drugs."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Theara Coleman has worked as a staff writer at The Week since September 2022. She frequently writes about technology, education, literature and general news. She was previously a contributing writer and assistant editor at Honeysuckle Magazine, where she covered racial politics and cannabis industry news.
-
Wall Street tumbles on poor tech results
Speed Read US markets had their worst day since 2022 as Tesla and AI stocks dropped
By Arion McNicoll, The Week UK Published
-
Salt Lake City named host of 2034 Winter Olympics
Speed Read The Winter Games are returning to the US for the first time in 32 years
By Rafi Schwartz, The Week US Published
-
Netanyahu makes controversial address
Speed Reads Israeli Prime Minister Benjamin Netanyahu's speech to Congress denounced Gaza war protestors
By Rafi Schwartz, The Week US Published
-
Netanyahu makes controversial address
Speed Reads Israeli Prime Minister Benjamin Netanyahu's speech to Congress denounced Gaza war protestors
By Rafi Schwartz, The Week US Published
-
Menendez convicted of bribery, fraud, and extortion
Speed Read The New Jersey Democratic Senator was found guilty in a federal corruption trial
By Rafi Schwartz, The Week US Published
-
Florida judge dismisses Trump documents case
Speed Read Judge Aileen Cannon ruled that special counsel Jack Smith was improperly appointed
By Rafi Schwartz, The Week US Published
-
Hamas says military chief survived Israeli strike
Speed Read An Israeli bombing failed to hit its intended target, military commander Mohammed Deif, but killed at least 90 Palestinians
By Peter Weber, The Week US Published
-
Biden, Trump urge calm after assassination attempt
Speed Reads A 20-year-old gunman grazed Trump's ear and fatally shot a rally attendee on Saturday
By Peter Weber, The Week US Published
-
First Israeli report on Oct. 7 finds 'severe mistakes and errors' in IDF response
Speed Reads Israeli military admits failures in response to deadly Hamas attack that triggered Gaza war
By Rafi Schwartz, The Week US Published
-
Biden saw neurologist during physicals
Speed Read Following his bad debate performance, many are asking questions about the president's brain
By Peter Weber, The Week US Published
-
Russia bombs Kyiv children's hospital
Speed Reads The daytime barrage interrupted heart surgeries and killed at least 40 people
By Peter Weber, The Week US Published