ARTICLE
13 December 2021

SAFE Banking Act Removed From Federal Defense Spending Bill

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
The U.S. House of Representatives Rules Committee declined to amend the National Defense Authorization Act for Fiscal Year 2022 (the "NDAA") to include the Secure And Fair Enforcement Banking Act of 2021 (the "SAFE Banking Act").
United States Finance and Banking
To print this article, all you need is to be registered or login on Mondaq.com.

The U.S. House of Representatives Rules Committee declined to amend the National Defense Authorization Act for Fiscal Year 2022 (the "NDAA") to include the Secure And Fair Enforcement Banking Act of 2021 (the "SAFE Banking Act"). The House Rules Committee's action follows similar action from the Senate.

The SAFE Banking Act, introduced by Representative Ed Perlmutter (D-CO), would enable cannabis-related legitimate businesses and service providers to access financial services. The purpose of the bill is to reduce the amount of cash held in legitimate cannabis businesses, thereby improving the safety of the businesses, their employees and the communities that they are situated in.

In a statement on the bill's removal from the NDAA, Mr. Perlmutter expressed frustration at the Senate's inaction, reporting that the bill "has been sitting in the Senate for three years and with every passing day their unwillingness to deal with the issue endangers and harms businesses, their employees, and communities across the country."

Commentary Jodi Avergun

This is a disappointing, but not unexpected, development. Trying to add SAFE Banking to the Defense Authorization Act was a bold move by legalization proponents to try to get a relatively noncontroversial and widely supported piece of legislation passed. SAFE Banking, if enacted, would significantly widen the financial market opportunities for state legal cannabis businesses. However, SAFE Banking does not address the reparation and social justice goals of Senate leadership, and, as such, its removal from the Defense Authorization Act was preordained.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More