Cannabis Regulators of Color Coalition Releases White Paper Critical of SAFE Banking Act

Dasheeda Dawson, thought leader, Founding Chair of CRCC, and Cannabis Program Manager for the City of Portland, said, “This is the first time the City of Portland has been published in this way, and should be very proud of this. A lot of people in the cannabis industry are conflating this the SAFE Banking Act with what they want to see for cannabis companies and banking, but in fact that is not what’s happening. CRCC has been looking for smart solutions that are banking specific in terms of equity for over a year. The biggest takeaway is that there is a BIG difference between increasing access and equitable access. We are trying to ensure that we set the record straight and that everyone understands what is happening here.”

She also mentioned that none of the CRCC recommendations are purposely intended to replace a more comprehensive bill about banking. “We do not address 280e in the sense of taking it away [in our recommendations], because it’s a tax issue, not a banking issue,” she explained.

Co-author Cat Packer, Distinguished Cannabis Policy Practitioner in Residence, Drug Enforcement and Policy Center, Moritz College of Law, The Ohio State University and Vice Chair, Cannabis Regulators of Color Coalition said, “We have both an opportunity and responsibility to pass cannabis banking reform that not only increases access to cannabis banking but that also seeks to ensure that access to cannabis banking is equitable.”

Packer added, “Not A SAFE Bet includes our analysis of the SAFE Banking Act, why it is unlikely to result in equitable access to cannabis banking, and recommendations to more equitably achieve cannabis banking reform.”

The Cannabis Industry, Equity, and the SAFE Banking Act

Without intervention, the inequities in the cannabis industry are likely to persist or worsen for cannabis businesses experiencing compounded racial and socioeconomic barriers. To correct these inequities, the panel will detail the white paper’s key recommendations to improve the bill and fulfill its stated goals. These recommendations include:

• Using the tax revenue collected as part of Internal Revenue Code Section 280E to create a fund to provide capital for businesses owned by people harmed by the War on Drugs. 
• Requiring financial institutions to demonstrate compliance with anti-discrimination laws, such as the Equal Credit Opportunity Act.
• Clearly stating that cannabis criminal records are no longer an automatic red flag that suggests the potential illegal activity of the business.

“This white paper underscores the need to ensure that fair and equitable banking is explicitly addressed in the SAFE Banking bill,” says Maritza Perez, Director, Office of Federal Affairs, Drug Policy Alliance. “Time and time again, we have seen people of color excluded from the regulated marijuana market despite carrying a disproportionate burden when it comes to marijuana enforcement. Congress must not pass the SAFE Banking bill without first incorporating meaningful reforms.” 

The expansion of the cannabis industry provides the nation with a new opportunity to correct the mistakes of the past. CRCC is actively working with federal and state lawmakers to center equity and inclusion in cannabis policy and regulations. The organization stands at the forefront of the growing movement to embed equity and justice into the foundation of a powerful new industry.

The CRCC paper can be found here.

Cannabis Regulators of Color Coalition (CRCC)

The Cannabis Regulators of Color Coalition (CRCC) is a coalition of government officials appointed or elected to lead, manage, and oversee regulatory and policy implementation for legal medical and adult-use cannabis markets across the nation and abroad. As leaders in post-prohibition cannabis policy, we focus on equity-centered regulation, industry best practices, and cannabis competency and standardization.