Letter to Hon. Jack Reed, Chairman US Senate Armed Service Committee; Hon. Adam Smith, Chairman US House Armed Service Committee; Hon. James Inhofe, Ranking Member US Senate Armed Service Committee; Hon. Mike Rogers, Ranking Member US House Armed Service Committee - SAFE Banking Act Inclusion in NDAA

Press Release

Dear Chairman Reed, Ranking Member Inhofe, Chairman Smith, and Ranking Member Rogers:

In anticipation of the Senate passing the Fiscal Year 2022 (FY22) National Defense
Authorization Act (NDAA) following the Thanksgiving state work period, we, as members of the
Senate Armed Services Committee, write to request that the final conference bill retain the text
of the SAFE Banking Act of 2021. The House of Representatives has passed the SAFE Banking
Act five times, most recently as an amendment to the NDAA, and we ask you to ensure that the
text of that amendment remains in the final conference version of the bill to be considered by the
House and the Senate.

The Secure and Fair Enforcement Banking Act (SAFE Banking Act), as included in the
House-passed NDAA, would allow banks, credit unions, and other financial institutions to offer
banking services to legally-operating cannabis businesses without fear of punishment by federal
regulators. More than thirty states and the District of Columbia have legalized marijuana for
medical use, and sixteen allow adult recreational use. However, financial institutions are often
reluctant to transact with cannabis-related businesses, even in states that have some form of
legalized cannabis, due to legal and regulatory risks arising from inconsistent federal and state
laws. Allowing cannabis businesses operating legally and in compliance with state law to access
financial services without federal reprisal would address public safety and compliance
challenges, helping communities reduce cash-motivated crimes. Law enforcement organizations
have publicly testified before Congress about the importance of moving large amounts of cash in
the cannabis industry into the banking system, where accounts are monitored in accordance with
existing federal anti-money laundering laws and the Bank Secrecy Act.1 Enacting the SAFE
Banking Act via the NDAA would support a rapidly growing industry that creates jobs, supports
small businesses, and raises revenue in states that have chosen to legalize cannabis, while
reducing safety risks.

The House of Representatives added the SAFE Banking Act as an amendment to the
FY22 NDAA by voice vote and on September 23, 2021, passed the amended NDAA by a vote of
316 to 113. The standalone legislation on which the amendment is based previously passed the
House of Representatives 321-101, garnering the support of more than three-quarters of the
chamber and a majority of the members of each party. The bill's list of co-sponsors is also
bipartisan in both the House and the Senate. Given the demonstrated broad support for this
measure, we ask you to ensure that the text of the SAFE Banking Act remain in the forthcoming
final conference version of the FY22 NDAA by the Senate receding to the House of
Representatives on Title LIV of H.R.4350 (Sections 5401 through 5415). This will help
cannabis-related businesses, create jobs, and strengthen public safety in our communities. We
look forward to working with you on this important issue.