The SAFE Banking Act (H.R. 1595) would change federal policies governing services currently offered by banks and credit unions to cannabis-related businesses.
The bill would prevent the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) from taking action against banks or credit unions that serve cannabis-related businesses.
In addition, the bill would prevent those regulators from limiting access to financial institutions by cannabis-related businesses.
At the end of 2018, there were 438 banks and 113 credit unions offering services to cannabis-related businesses.
The Congressional Budget Office (CBO) believes the bill will result in additional deposits at banks and credit unions. CBO estimates that beginning in 2022 insured deposits at banks and credit unions will increase by about $1.2 billion and $200 million, respectively. By 2029, insured deposits will increase to $2.1 billion and $350 million at banks and credit unions, respectively.
However, CBO cautions that the lack of data on deposits from cannabis-related businesses at financial institutions means its estimates new deposits could be greater or smaller than predicted.
Read the report.
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