SAFE Banking Act Fails: This Week in Cannabis Investing

The outgoing Congress could not get the SAFE Banking Act, which was designed to improve cannabis companies' access to finance, passed before the end of the year.

marijuana leaf with gavel and american flag
(Image credit: Getty Images)

The SAFE Banking Act failed to get through Congress this year, with Senate Majority Leader Chuck Schumer blaming Senate Republicans for keeping the bill from passing. Congress's failure to pass SAFE means that communities across the country are still vulnerable to crime and forced to operate as all-cash businesses. Not only that, many small cannabis businesses will still lack access to support from banks and financial institutions.

"We had very good bipartisan support. We had hoped to get it done. I worked for months with different Republicans, led by Senator Daines (R-MT) – but at the last minute, both Senators Toomey and McConnell opposed it," said Schumer. "It is bipartisan. It has the support of many groups. We're going to go back at it next year."

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Morgan Paxhia
Contributing Writer

Morgan Paxhia is Managing Director and Co-Founder of Poseidon Investment Management. With over 10 years experience in investing and finance, Morgan has developed a deep understanding of individual company analysis, portfolio construction, and risk mitigation. This content is not intended to provide any investment, financial, legal, regulatory, accounting, tax or similar advice, and nothing should be construed as a recommendation by Poseidon Investment Management, LLC, its affiliates, or any third party, to acquire or dispose of any investment or security, or to engage in any investment strategy or transaction. An investment in any strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. This content should not be considered as an offer or solicitation to purchase or sell securities or other services. Any of the securities identified and described herein are for illustrative purposes only.  Their selection was based upon nonperformance-based objective criteria. The content presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Past performance is not indicative of future results.