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Home Marijuana News New Analysis of SAFE Banking Act Asks for 10 Amendments to
Improve Equity
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NEW ANALYSIS OF SAFE BANKING ACT ASKS FOR 10 AMENDMENTS TO IMPROVE EQUITY

Former cannabis regulators release an extensive analysis describing the problems
with the SAFE Banking Act, and how to improve it.
byNicole Potter
August 15, 2022
Shutterstock
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A paper written by the Cannabis Regulators of Color Coalition (CRCC) was
published by the Ohio State University Moritz College of Law on Aug. 12. The
paper, entitled “Not a SAFE Bet: Equitable Access to Cannabis Banking, An
Analysis of the SAFE Banking Act,” analyzes the Safe and Fair Enforcement
Banking Act (SAFE), and includes numerous recommendations for improvement.

Authors Cat Packer, Shaleen Title, Rafi Aliya Crockett, and Dasheeda Dawson
state that the SAFE Banking Act isn’t enough in its current form. “But
unfortunately, SAFE, as written, is unlikely to result in equitable access to
financial services,” they wrote in the study abstract. “This paper summarizes
the bill, analyzes why it would fall short of its purported goals, and makes
recommendations to improve the bill.”

“SAFE would address only the legal and regulatory consequences potentially faced
by financial institutions for providing services to the cannabis industry,” the
authors wrote in their executive summary. “Without additional legislative
amendments to directly address challenges related to fair and equitable access
to financial services, small and minority-owned cannabis businesses that
currently have inadequate access to banking services or loans are likely to
continue to be denied the full breadth and depth of services offered to others.”

The authors compiled 10 recommendations that could help improve future reform of
cannabis banking (check out the full explanation for each recommendation here.)
In summary, these recommendations cover a thorough collection of topics of
improvement, such as redirecting Internal Revenue Service code 280E funds,
expanding requirements for anti-discrimination laws, identifying best practices
for federal banking regulators, and much more.

The authors concluded that although a cannabis policy gap has developed, now is
the time to address these concerns. “The continued criminalization of cannabis
at the federal level, coupled with an increasing number of states authorizing
medical or adult-use cannabis activity, has resulted in an ever-widening policy
gap between federal and state cannabis laws,” the authors said. “However, due to
cannabis’s widely accepted medical use, existing state and local efforts to
authorize, license and regulate cannabis for medical and adult-use, and
bipartisan support from the American public regarding cannabis legalization,
many believe that it is no longer a matter of ‘if’ or ‘when’ this gap will be
addressed, but ‘how’.”

Ultimately, the CRCC authors don’t recommend the SAFE Banking Act in its current
form unless these topics are discussed. “As such, regardless of whether Congress
decides to pass cannabis banking reform as a part of more comprehensive cannabis
policy reform or as a standalone issue, Congress should ensure that any
legislation related to cannabis banking reform includes explicit provisions that
seek to ensure fair and equitable access to financial services for all in the
cannabis industry. Until the SAFE Banking Act is amended to include such
provisions it should not be considered a safe bet to achieve equity in cannabis
banking.”



The release of this paper, along with these 10 recommendations, arrives nearly
one month after Senate Majority Leader Chuck Schumer, Senate Finance Committee
Chairman Ron Wyden, and Sen. Cory Booker filed the Cannabis Administration and
Opportunity Act in July. Reports predict that compromises could be made, with
the possible release of a bill being referred to as “SAFE Banking Plus.”

On Wednesday, Aug. 17, the CRCC is holding a Cannabis Regulatory Deep Dive to
discuss this analysis with all four author contributors, as well as Maritza
Perez, Director of the Office of Federal Affairs at the Drug Policy Alliance,
who will moderate the meeting. The event will be held via Zoom at 12 p.m. ET.

 * cannabis reform
 * Cannabis Regulators of Color Coalition
 * Cat Packer
 * Dasheeda Dawson
 * Ohio State
 * Rafi Aliya Crockett
 * SAFE Banking Act
 * Shaleen Title

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Nicole Potter


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