First proposed and passed by the U.S. House of Representatives in 2019 and then passed again by the House on April 19 of this year, the Secure and Fair Enforcement (SAFE) Banking Act is intended to protect financial institutions that provide services to cannabis companies.

The SAFE Banking Act and the related CLAIM Act (Clarifying Law Around Insurance of Marijuana) would protect financial institutions from any liability or forfeiture action by the federal government for providing accounts, loans or insurance to businesses related to the rapidly expanding cannabis sector.

Originally proposed, in part, to protect the first cannabis companies in the early phase of legalization by states, the SAFE Act was meant to protect the cash-dependent storekeepers, dispensaries and growers.

Cash-only businesses sometimes had tens of thousands of dollars, legally obtained but unbankable, on hand, presenting a tremendous risk to both the financial security of cannabis companies and the health and well-being of owners and workers.