On Monday, we reported that Congress was likely to vote on the SAFE Banking Act this month, and the latest indicators strongly point to a floor vote being scheduled for next week. The supporters of the bill would like the vote to be conducted under suspended House rules, and a number of amendments have been suggested to win over more Republicans and ensure that the bill will get the two-thirds majority needed under the suspended rules arrangement.
One of the changes that has been made provides clarification that the protections given to banks that work with state-legal marijuana companies also apply to the banks serving companies in the hemp and CBD industries.
Another change expands the definition of the ancillary businesses that work with marijuana companies. The expanded definition includes insurance companies and federal home loan companies. The bill also states that financial regulators wouldn’t have any undue restrictions placed upon them as they supervise marijuana companies.
An extra section added to the SAFE Banking Act also talks extensively about the hemp industry and why financial regulators must release guidelines explaining how banking institutions can work with the hemp and CBD industries without facing any sanctions from regulators.
There is also a specific section that is aimed at forestalling any plan by the Justice Department to arbitrarily order banks to close the account or accounts of a company or people in the firearms industry as a way of forcing those entities out of business. Any such action must be accompanied by a sound reason.
All these provisions are aimed at putting the concerns of conservative lawmakers at bay, especially those who don’t want to be involved in passing a law that is primarily intended to facilitate the marijuana industry. By including the hemp, CBD and gun industries, the scope of the bill is expanded and more GOP lawmakers may be enticed to support it.
However, not all is well within the Democratic caucus as some members have been vocal that they will not support the bill unless measures to address social equity issues in the marijuana industry are first implemented.
Such members of Congress feel that the SAFE Banking Act largely helps banks and marijuana companies to thrive and yet a more pressing concern are the racial issues surrounding the implementation of marijuana laws across the country.
Supporters of the proposed law say that any measure that chips away at prohibition should be supported and the social equity issues will also be addressed by the other bills before different committees of the House of Representatives.
Analysts believe marijuana sector players like Hemptown USA and HTC Extraction Systems (TSX.V: HTC) will be waiting keenly to hear what comes out of Congress when the bill is voted on.
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