The Senate Banking Committee passed the Secure and Fair Enforcement Regulation (SAFER) Banking Act in a 14-9 vote Wednesday, drawing immediate applause from small business owners.
Reese Xavier, CEO and managing partner of HT23 Growers, told The Hill he was excited the SAFER Banking Act passed out of committee.
But he’s hoping to see the bill provide cannabis companies the same access to loans, mortgages and other services as it does to hemp sellers.
“That then allows us to gain access to the capital that we need to stand up these businesses to really make a difference in communities of color,” Xavier said.
The bill aims to help allow legal state-level marijuana dispensaries and growers to access federally regulated banks and credit unions that have been wary of the persistent federal ban.
Some marijuana advocates also hope its potential passage adds to momentum for further reforms in the cannabis space.
Senate Majority Leader Chuck Schumer (D-N.Y.) said after the markup that he would bring the bill to the floor for a vote “as quickly as possible.”
But additional changes are possible as some Democrats have expressed concerns about the lack of criminal justice provisions in the act.
Sen. Raphael Warnock (D-Ga.) broke with his party in the vote on Wednesday, saying he was concerned the bill could increase the racial wealth gap and “just make the comfortable more comfortable.”
“This bill will make life safer for bankers, for businesses and financial institutions, some of whom have been profiting from the cannabis industry illegally for years, which is ironic given many of the regular folks who illegally sold or used cannabis are sitting in jail cells right now,” Warnock said.
Schumer has said he’s committed to including criminal justice reforms.
The Hill’s Taylor Giorno has the latest here.
