House Passes NDAA with SAFE Banking Act Provisions; Longtime Champion Pledges to Keep Pushing for Senate Passage

Source: S&P Global Market Intelligence

Financial institutions would be allowed to lend to cannabis companies under a defense authorization bill passed by the U.S. House late July 14.

The bipartisan Secure and Fair Enforcement, or SAFE, Banking Act is on its way to the U.S. Senate, where lead sponsor U.S. Rep. Ed Perlmutter, D-Colo., said he will "pursue any and all legislative avenues … to advance commonsense cannabis reforms starting with access to the banking system."

The bill would allow marijuana-related businesses in states with some form of legalized marijuana and strict regulatory structures to access the banking system. The House passed the measure as an amendment to the fiscal 2023 National Defense Authorization Act.

Financial trade groups have been lobbying for the legislation as they seek to lend to an industry that is experiencing explosive growth. The U.S. marijuana market is the world's largest, generating over $25 billion in regulated sales in 2021 — a figure expected to reach $40.5 billion by 2025.