The Imminent Cannabis Banking Amendment Vote: What It Means for the Industry

The U.S. cannabis industry is at a crossroads as the Senate prepares to consider attaching a cannabis banking amendment to the GENIUS Act, a standalone cryptocurrency bill officially named the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Industry lobbyists have quietly mobilized to ensure that banking protections for state-legal cannabis businesses are included in the amendment, while opponents are scrambling to block its insertion—making this week’s floor action a must-watch moment for stakeholders across the cannabis value chain.

1. Background: Why Cannabis Businesses Can’t Bank

Since cannabis remains a Schedule I controlled substance under federal law, banks and credit unions risk federal penalties—ranging from loss of deposit insurance to anti-money-laundering enforcement—if they serve state-legal cannabis companies. As a result, most cannabis businesses operate on a cash-only basis, exposing them to heightened security risks, complicating payroll and tax compliance, and deterring outside investment.

The SAFE Banking Act (Secure and Fair Enforcement Banking Act) was first introduced in 2019 (H.R. 1595/S. 1200) and reintroduced in subsequent sessions as H.R. 2891 in the House and S. 1323 in the Senate during the 118th Congress, with Rep. Dave Joyce (R-OH) and Sen. Jeff Merkley (D-OR) among the lead sponsors. That bill passed the House in 2021 (321–103 vote) but stalled in the Senate, despite being approved by the Senate Banking Committee as the SAFER Banking Act (S. 2860) in September 2023. With federal reform on hold, the cannabis industry has continued to push incremental relief through strategic legislative vehicles.

2. The GENIUS Act: A Vehicle for Banking Reform

The GENIUS Act was crafted to establish the first comprehensive regulatory framework for payment stablecoins—a fast-growing segment of the digital asset market valued at over $250 billion. On May 21, 2025, the Senate voted overwhelmingly (69–31) to invoke cloture on proceeding to the GENIUS Act—an essential procedural step that cleared the bill for full debate and put it on track for a floor vote this week.

Advocates of cannabis banking reform view the GENIUS Act as a “must-pass” bill that could carry their amendment across the finish line—similar to past efforts to attach SAFE Banking language to appropriations or defense funding bills. Embedding cannabis banking protections in such a high-profile financial services package would bypass standalone opposition and expedite relief for cannabis operators.

3. What the Amendment Proposes

The amendment under consideration mirrors the SAFE Banking Act (H.R. 2891 & S. 1323), and would:

• Prohibit federal banking regulators from penalizing depository institutions solely for providing services to state-legal cannabis businesses.
• Clarify that proceeds from cannabis transactions are not “unlawful activity” under anti-money-laundering statutes.
• Extend safe-harbor protections to banks, credit unions, and their officers or employees for servicing cannabis-related accounts. By codifying these provisions, the amendment aims to remove the “second tier” of prohibition that forces cannabis companies to rely on cash, unlocking mainstream financial services—from basic deposit accounts to loans and lines of credit.

4. Political Dynamics: Champions and Critics

Supporters

• Sen. Jeff Merkley (D-OR) and Rep. Dave Joyce (R-OH), original sponsors of the SAFE Banking Act, have rallied behind the amendment.

• Senate Banking Committee Chair Tim Scott (R-SC) has endorsed using the GENIUS Act vehicle to advance banking reform, reflecting the bipartisan nature of the proposal Financial Regulation News.

• Treasury Secretary Janet Yellen publicly signaled her support for legislation to resolve the federal-state banking conflict, citing security and tax-collection concerns among cannabis operators. Opponents

• Smart Approaches to Marijuana (SAM) Action, a national anti-legalization group, has issued an email alert warning that the amendment would “keep marijuana federally illegal while encouraging banks to accept federally illegal proceeds,” and urging constituents to lobby against it.

• On the Senate floor in the last Congress, Senators Elizabeth Warren (D-MA) and Tommy Tuberville (R-AL) challenged the notion that there was sufficient GOP support for the standalone banking bill, raising doubts about its viability without strategic attachments. With a 51-50 Republican majority in the Senate (including the Vice President’s tie-breaking vote), proponents need at least 60 votes to overcome a filibuster on the GENIUS Act. Any single defection, therefore, could doom both the cryptocurrency framework and the cannabis banking amendment.

5. Economic Implications for the Cannabis Industry

A comprehensive CBO analysis of the SAFE Banking Act estimated that once banking protections are in place, federally insured deposits from cannabis businesses could swell by billions of dollars, providing relief from cash-handling costs and security outlays. That influx of capital would enable:

• Expansion of cultivation and retail operations, as lenders would feel comfortable extending equipment loans and working capital lines.
• Entry of public and institutional investors, who typically avoid all-cash businesses due to heightened compliance risks.
• More efficient tax collection, as cannabis firms transition to digital payments, reducing under-reporting and tax evasion. Conversely, failure to secure banking access could perpetuate the cash crisis, increasing theft, fraud, and insurance premiums—costs that ultimately are borne by consumers and erode legal market competitiveness.

6. Industry Readiness and Responses

Despite high stakes, some industry insiders express caution: a cannabis lobbyist told Marijuana Moment they were “unaware of any plan” to add SAFE Banking language to the GENIUS Act, suggesting that the amendment’s fate remains uncertain until it’s formally filed. Meanwhile:

• The Government Accountability Office (GAO) convened focus groups of cannabis businesses in December 2024 to document banking challenges, building an empirical case for reform Marijuana Moment.
• Major MSOs (multi-state operators) are finalizing alternative financing arrangements—such as private credit facilities—anticipating continued delay in federal relief.
• JPMorgan Chase’s CEO recently stated that the bank “probably would” begin servicing cannabis businesses if federal law changed, signaling the pent-up demand from the financial sector.

7. What Happens Next: Timeline and Scenarios

• Amendment Filing: Senate leaders must formally submit the cannabis banking amendment to the GENIUS Act during the upcoming floor debate.
• Debate and Debate Time Agreements: Sponsors will negotiate “debate time” agreements to structure floor discussion, including potential roll-call votes.
• Cloture Vote on Amendment: To attach the amendment, supporters will need at least 60 affirmative votes in a cloture motion.
• Final Passage of GENIUS Act: If cloture succeeds, the Senate can adopt the amendment and proceed to final passage of the GENIUS Act.
• House Reconciliation (if needed): Should the House have already passed the GENIUS Act without the amendment, a conference committee or House vote may be required to reconcile differences. Best-Case Scenario: The amendment garners bipartisan support, is adopted, and paves the way for final enactment in 2025—offering the cannabis industry its first federal banking safe harbor.

Worst-Case Scenario: A single GOP or Democratic “no” vote blocks cloture, leaving cannabis businesses in limbo and forcing advocates back to square one with standalone or state-by-state remedies.

8. Frequently Asked Questions

**Q1: What exactly is the GENIUS Act?**A: It’s a bipartisan cryptocurrency bill—the Guiding and Establishing National Innovation for U.S. Stablecoins Act—designed to regulate payment stablecoins and reinforce U.S. leadership in digital assets Reuters.

**Q2: Why attach cannabis banking to a crypto bill?**A: The GENIUS Act is a high-priority, must-pass financial services vehicle with broad support, making it an effective “legislative vehicle” to carry cannabis banking protections past procedural hurdles.

**Q3: Who will decide the fate of the amendment?**A: All 100 Senators will vote on cloture to consider the amendment; 60 votes are required to cut off debate and proceed to a final vote.

**Q4: What happens if the amendment fails?**A: Cannabis businesses remain restricted to cash operations, prolonging security and compliance risks. Advocates will likely seek other “carve-outs” in must-pass spending bills or vote on standalone SAFE Banking legislation in a future Congress.

**Q5: How can I track this amendment?**A: Marijuana Moment and the NCIA’s bill tracker provide real-time updates on amendment filings and floor action. You can also monitor the Senate’s cloture calendar and review Congressional reports on the GENIUS Act via Congress.gov.

Conclusion

The week ahead may mark a turning point for the cannabis industry’s banking conundrum. Embedding the SAFE Banking Act into the GENIUS Act could finally end the cash-only era for state-legal cannabis businesses—promising safer operations, enhanced investor confidence, and a more level playing field for legal operators. However, razor-thin vote margins and vocal opposition mean nothing is guaranteed. Cannabis stakeholders should watch every procedural vote closely and be prepared to mobilize support or pivot to alternative strategies depending on the outcome.