October 25, 2021

Volume XI, Number 298

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October 25, 2021

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U.S. House Passes the SAFE Banking Act as Part of Defense Bill

The SAFE Banking Act passed in the U.S. House of Representatives for the fifth time on September 23, 2021. This landmark legislation would pave the way for more financial institutions to serve the state-legal cannabis industry by removing some of the attendant legal and regulatory risks, as we have previously explained.

In a tactical decision to help the Act finally get across the finish line in the Senate, Rep. Ed Perlmutter proposed that it be included as an amendment to the National Defense Authorization Act (NDAA). The Act was added to the NDAA by voice vote on September 21, and the NDAA passed the House in a 316-113 vote on September 23.

But the Act still faces an uphill climb in the Senate, where some Democrats – including Majority Leader Chuck Schumer – are eyeing more comprehensive cannabis reform like the Cannabis Administration and Opportunity Act, which we analyzed here. Sen. Sherrod Brown, who chairs the Committee on Banking, Housing, and Urban Affairs, has also indicated that he supports tying the Act to broader cannabis reform rather than passing it as a standalone measure.

Despite these obstacles, the SAFE Banking Act does have broad bipartisan support, and its inclusion in the NDAA confirms that the Act remains a top legislative priority for Rep. Perlmutter. We will continue to keep you updated as the Act works its way through the Senate.

© 2021 Bradley Arant Boult Cummings LLPNational Law Review, Volume XI, Number 271
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About this Author

J. Hunter Robinson Commercial Litigation Bradley Arant Boult Cummings LLP
Associate

Hunter Robinson represents clients in commercial litigation and compliance-related matters across the country. His litigation practice focuses on representing financial institutions in lender-liability, title, and business disputes, including class actions. Hunter represents mortgage servicers and lenders in suits arising from repurchase demands, and defends those entities in litigation involving alleged violations of the Truth in Lending Act (TILA), Fair Debt Collection Practices Act (FDCPA), Real Estate Settlement Procedures Act (RESPA), and the Fair Credit Reporting...

615-252-2328
Shelby D. Lomax Finance Attorney Bradley Arant Boult Cummings Nashville
Associate

Shelby Lomax is an associate in Bradley’s Banking and Financial Services Practice Group, focusing on litigation and regulatory compliance issues. She has experience advising clients on regulatory risks relating to small business lending, alternative finance, and merchant cash advance transactions.

When assisting clients involved in regulatory and compliance matters, Shelby draws on her extensive experience as a banker. Prior to becoming an attorney, Shelby had a successful career as a banker, working both with consumer and commercial clients....

615-252-3591
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