A Senate committee passed a measure to advance the SAFER Banking Act which will now go to a full vote in the chamber and potentially open doors in the cannabis industry.
The US Senate Banking Committee passed a measure on September 27, 2023, to advance the Secure and Fair Enforcement Regulation (SAFER) Banking Act to the senate floor (1). The bill introduced by a bipartisan group of senators, has raised expectations in the cannabis industry which is cash-dependent because they are unable to access regular banking services.
Due to cannabis’s federal illegal status, businesses in the industry are unable to utilize the services a typical “non-cannabis” business is able to use every day. Unfortunately, with several states legalizing cannabis, this does not change the financial aspect for cannabis businesses.
The SAFER Banking Act if passed in the Senate, will allow establishments to have access to normal banking services such as, getting approved for loans, access to deposit accounts, and various other banking services (1).
Stocks for the cannabis industry began to rise following the news. Cronos Group (CRON.TO), SNDL (SNDL.O), and Trulieve Cannabis (TRUL.CD) shares all rose between 1 – 3% (1) after the committee’s vote.
"We are hopeful that the revised language and clearer guidelines for financial institutions will continue to break through the many unproductive hurdles that have prolonged the passage of this bill for far too long," said cannabis firm Acreage Holdings (ACRGau.CD) (1).
The SAFE Banking Act, which was an earlier version of the legislation, was unable to pass a Senate vote even though it passed through the House of Representatives seven times.
"Realizing this first vote out of the Senate signals strong bipartisan support from both chambers of Congress," commented Kim Rivers, CEO of Trulieve (1).
In August 2023 (2), the US Department of Health and Human Services (HHS) formally announced their recommendation to classify cannabis from its original stance as a Schedule I drug to a Schedule III drug. Although their recommendation is not for a full descheduling of the medicinal plant, it is still to be considered a progressive step in the right direction. That decision now falls into the hands of the Drug Enforcement Agency (DEA) who holds the final decision on rescheduling.
It's an exciting time to be in the cannabis industry where everyone will be watching to see how the SAFER Banking Act passes through the Senate.
References
Collaboration, Gender Diversity, and Progress: Julie Kowalski on Advancing Cannabis Science
December 10th 2024In this interview with Cannabis Science and Technology, Julie Kowalski, an experienced analytical chemist, discusses her path into the cannabis industry, starting with early work in gas chromatography. Kowalski reflects on her perspectives as a female scientist, highlighting biases she’s experienced and the benefits of gender inclusivity in the cannabis space. Greater unity and professionalism could benefit the industry as a whole, she explains. She also encourages collaboration and more women in leadership positions in order to build a stronger scientific community, and also urges women to advocate for themselves, noting that women in cannabis face unique obstacles but often demonstrate consensus-building strategies and solutions.
Ep 24, Part I: Data Transparency in Cannabis Testing with Yasha Khan
November 21st 2024Evan Friedmann interviews Yasha Khan, co-founder of MCR Labs, about his journey into the cannabis industry and his efforts to promote transparency and integrity in laboratory practices. Yasha discusses the origins of MCR Labs, which began in Massachusetts to meet the needs of the soon-to-be legal medical cannabis market. He explains the challenges faced, including result manipulation by labs and the impact on public health. Yasha's Freedom of Information Act (FOIA) project aimed to gather testing data from 37 states, revealed significant discrepancies in potency and mold results. Despite some states' reluctance to share data, Yasha has made much of this data public, leading to collaborative research and publications on various aspects of cannabis testing.
Gender Diversity and Innovation in the Cannabis Space: Insights from Tess Eidem, PhD
December 9th 2024Cannabis Science and Technology sat down with Tess Eidem, PhD, PCQI, member of Saturn Scientific, LLC, to discuss her journey from antibiotic research to cannabis microbiology and her observations throughout her career. Dr. Eidem highlights challenges women face in this male-dominated industry, including limited representation in leadership roles and frequent experiences of bias and discrimination. She emphasizes the importance of gender diversity in fostering innovation, improving product safety, and addressing women’s health needs in cannabis applications. Her advice to women scientists is to build strong professional relationships and carefully evaluate work environments to advance their careers in this evolving and often challenging space.
Ep 23, Part III: Accreditation in the Cannabis Industry with Susan Audino
October 24th 2024In Part III of this episode, host Evan Friedmann is joined by Susan Audino, PhD, founder of S.A. Audino & Associates, LLC, and co-founder of Saturn Scientific, LLC, to examine the complexities of sampling in the cannabis industry, emphasizing the need for proper sampling plans, and methods.