At the recent Benzinga Cannabis Capital Conference, former U.S. Representative Ed Perlmutter offered insights into the ongoing push for cannabis banking reform, primarily through the SAFE Banking Act. A staunch advocate for the act during his time in Congress, Perlmutter outlined the progress achieved so far and the obstacles still standing in the way of enacting meaningful federal cannabis legislation.
When asked about the biggest hurdle facing cannabis banking reform, Perlmutter pointed directly to federal law. “The biggest issue is just federal law controls banking, period,” he stated. While some have proposed state-level banking solutions, Perlmutter emphasized that all financial transactions ultimately go through the Federal Reserve, which operates under federal law. “So the federal law has to be changed,” he added, underscoring the crucial need for federal action to create lasting progress in cannabis banking.
Despite the lengthy battle for reform, Perlmutter remains cautiously optimistic about the future of the SAFE Banking Act. He believes the issue has garnered enough understanding and traction in Congress to make its passage inevitable. “We’ve been persistent. People do understand the subject, and now we’ve just got to get it to a final vote in the Senate, and then we got a lot of work to do in the House to make a deal that Patrick McHenry is going to like and get it to the President,” Perlmutter explained. McHenry, a Republican representative and chair of the House Financial Services Committee, is seen as a key figure in guiding the legislation through the political process.
Although McHenry is not a vocal supporter of cannabis reform, Perlmutter noted that “he’s not somebody who’s going to throw himself down and stop anything at all costs.” Instead, McHenry has shown a willingness to negotiate and make deals on broader packages, which could potentially include cannabis banking reform.
As Perlmutter pointed out, the SAFE Banking Act might be part of a larger or smaller legislative package. He stressed that continued persistence and advocacy are essential. “It might be part of a bigger package or a littler package, but it’s going to get done,” he said, noting that while cannabis is just one of many issues Congress deals with, it has gained significant attention and support.
While the path to passing the SAFE Banking Act is still long and complex, Perlmutter’s optimism reflects the growing consensus that the time for cannabis banking reform is nearing. “I think that’s why, ultimately, it’s going to get done,” he said, expressing confidence that the persistence of lawmakers and industry advocates will soon pay off.
At the Benzinga Cannabis Capital Conference, Perlmutter’s reflections highlighted the progress made. He reminded attendees that, despite the setbacks, the effort to reform cannabis banking is closer than ever to becoming a reality.
