The cannabis industry, is no stranger to regulatory gumbo, with banking and financial services being a persistent challenge. The Secure And Fair Enforcement (SAFE) Banking Act was meant to be the hope to address these issues. However, the same seed now has sprouted into – the Secure And Fair Enforcement Regulation (SAFER) Act. In this blog post, we will explore the SAFER Act and compare it to the SAFE Act, shedding the green light on the potential impact of these legislative proposals on the cannabis industry.
The SAFE Act: A Brief Overview
The SAFE Banking Act was passed by the U.S. House of Representatives in 2021 and has been championed as the beacon of hope and safe haven for the cannabis banking community to serve cannabis-related businesses. The purpose of SAFE was to end the banking industry’s fear of federal prosecution for providing financial services to the cannabis sector, thus enabling legitimate cannabis-related businesses with access to traditional banking services, secure loans, and manage their finances like any other business. Many believe this was a step in the right direction and have given their green thumbs up for approval.
The SAFER Act: A Game Changer
The new SAFER Act was recently passed on September 27, 2023, by the Senate Banking Committee and is a bipartisan legislation that represents an improved version of the SAFE Banking Act. This will allow state-licensed cannabis businesses easier access to financial services such as traditional bank accounts, lending, and insurance that are available to other legal businesses. It is with the hope that this act will strive to remove cannabis from the Schedule 1 federal list of controlled substances, thereby allowing states to regulate the substance without federal intervention through Schedule 3.
SAFER than SAFE: Two of a Kind
The SAFE Banking Act focuses primarily on financial services, while the SAFER Act aims to achieve more of turning over a new leaf by recognizing the need for broader legislative changes regarding the legality of cannabis. The SAFER Act doesn’t just seek financial safeguards for cannabis businesses; it proposes a paradigm shift in how the federal government views and regulates cannabis, potentially opening the door for further industry growth and standardization. The SAFE Banking Act focused on the specific problem, seeking to provide a solution for financial services, while the SAFER Act confronts the core issue of cannabis’s federal legality and regulation.
Conclusion
In conclusion, both the SAFE and the SAFER Acts are important, but the SAFER Act presents a more comprehensive solution that could be a game changer by turning over a new leaf by addressing deep-rooted issues and reshaping the industry’s future growth and legitimacy as we know it. The promises a new era of cannabis regulation, ultimately benefiting both the industry and consumers. The cannabis industry is hoping for a brighter and greener future.
