Instant View: US Senate committee votes to advance marijuana banking bill

Acreage Holdings

27/09/2023 17:39

Sept 27 (Reuters) - A U.S. Senate committee on Wednesday
voted to advance a marijuana banking bill, raising hopes for the
cash-dependent cannabis sector to get access to regular banking
services.
    Most banks in the country do not service cannabis companies
as marijuana remains illegal at the federal level despite
several states legalizing its medicinal and recreational use.
    The Secure and Fair Enforcement Regulation Banking Act
(SAFER) bill, introduced by a bipartisan group of senators last
week, will now move to the Senate floor.
    
    COMMENTS
    
    JEFF MERKLEY, SENATOR FROM OREGON
    "Forcing legal businesses to operate in all-cash is
dangerous for our communities ... passing the SAFER Banking Act
through committee is a historic moment in this body."
    
    KIM RIVERS, CEO, TRULIEVE CANNABIS
    "At this juncture, we believe this piece of legislation is
ready for prime time after having had seven votes out of the
House in the past. Realizing this first vote out of the Senate
signals strong bipartisan support from both chambers of
congress."
    
    DAVID KLEIN, CEO, CANOPY GROWTH
    "The American people overwhelmingly support legal cannabis
and today's bipartisan vote as well as continued progress on
state-level legalization demonstrates the industry's momentum."
    
    BEN KOVLER, CEO, GREEN THUMB INDUSTRIES
    "Incorporating critical provisions such as expungement when
bringing this bill to the floor is a significant milestone,
acknowledging the devastating implications of cannabis
prohibition and the failed War on Drugs, which has
disproportionately impacted Black and Brown communities for
decades."
    
    CURALEAF HOLDINGS
    "We have seen this positive first step towards banking
reform seven times before, and each time we have fallen short of
success. We urge our congresspersons on both sides of the aisle
to listen to the voices of their constituents and enact this
critical legislation."
    
    PATRICK O'BOYLE, CEO, DAMA FINANCIAL
    "With the industry poised to reach $34 billion by the end of
this year, the implications of more accessible financial
services will be transformative and will attract further
investment and innovation, especially when considering the HHS's
recent recommendation to reclassify cannabis as a Schedule III
substance."
    
    MORGAN PAXHIA, MANAGING DIRECTOR AND CO-FOUNDER, POSEIDON
INVESTMENT MANAGEMENT
    "We believe it is important that capital markets be included
if the government believes in true banking reform and we will
see what happens next in the currently volatile House."
    
    DAVID GOUBERT, CEO, AYR WELLNESS
    "Cannabis operators of all sizes deserve fair treatment by
the federal government, and this important bill represents a
simple but crucial step closer towards that goal."
    
    ED SCHMULTS, CEO, STATEHOUSE
    "By pulling the cash component out of businesses and into
banking institutions, SAFER should, in theory, eliminate the
public safety risk related to the all-cash nature of the
cannabis industry."
    "The final language of the bill reflects a tough negotiation
that has spanned years and several legislative sessions. While
we are happy to see SAFER finally move forward, we understand
there is much more work to be done to address the harm caused by
the failed War on Drugs."
    
    JESSE REDMOND, HEAD OF CANNABIS SECTOR, WATER TOWER RESEARCH
    "Investors also realize that getting to Schedule III is a
larger catalyst and are eagerly anticipating the DEA's response
to the HHS recommendation. There are multiple political
catalysts in play and the industry is excited about the
potential to finally make progress in Washington."
    
    GEORGE ARCHOS, CEO, VERANO
    "The progression of the SAFER Act is a long overdue step
forward by our elected officials to recognize the countless
benefits this incredible plant provides and finally take
decisive action to support the will of their constituents to
further the development of this growing industry, while also
creating opportunity for increased investments, job creation and
revenue."

 (Reporting by Tanay Dhumal, Sourasis Bose and Bansari Mayur
Kamdar in Bengaluru and Doina Chiacu in Washington; Editing by
Shounak Dasgupta)
 ((Sourasis.Bose@thomsonreuters.com))