or bill federal cannabis legalization has been reintroduced in Congress, led by Democratic Senators Cory Booker (NJ), Chuck Schumer (NY) and Ron Wyden (OR). The Cannabis Stewardship and Opportunities Act would remove cannabis entirely from the Controlled Substances Act and create a Cannabis Products Center to regulate the production, labeling, distribution, sales and other elements of the cannabis industry’s production and retail.

In a statement, Booker said, if passed, the legislation would “dismantle the unjust and outdated federal prohibition of marijuana, create a federal regulatory framework to protect public health and safety, erase past convictions for low-level cannabis offenses, and provide restorative justice to communities most harmed by decades of failed drug policy.”

The measure aims to direct the Food and Drug Administration to establish labeling standards for cannabis products, including strength, dosages, servings, place of manufacture and directions for use; create programs and funding to prevent youth cannabis use; and increase funding for comprehensive treatment of opioids, stimulants, and substance use disorders.

“The over-criminalization of cannabis has destroyed many lives, disproportionately harming communities of color. Our Cannabis Stewardship and Opportunity Act is needed and would right historical wrongs by investing in safety, research, worker rights and banking access for the industry. The movement is growing and I will not stop until federal justice is achieved for the legal people. It is long past time the government caught up.” – Schumer in one press release

The proposal would maintain federal bans on trafficking cannabis in violation of state law and create a grant program to help departments combat illegal cannabis; require the Department of Transportation to create standards for cannabis-impaired driving; direct the National Highway Traffic Safety Administration to collect data on cannabis-impaired driving, create educational materials on best practices, and conduct public service advertising campaigns; and encourage states to enact bans on open containers of cannabis.

In a statement, Wyden said the “only judicial insanity” he sees “is the continued federal prohibition of cannabis.”

“Our legislation is the most comprehensive proposal on the books to end the federal ban on cannabis while keeping public health and safety front and center,” he said in the statement. “The federal government must rise to the occasion, and our bill is the way to do that.”

Additionally, the bill would transfer federal jurisdiction over cannabis to the Alcohol and Tobacco Tax and Trade Bureau; eliminating the tax code’s restriction on cannabis businesses claiming business expense deductions and implementing an excise tax on cannabis products; establishing market competition rules intended to protect independent manufacturers, wholesalers and retailers and to prevent anti-competitive behaviour.

The measure also contains provisions to encourage cannabis research, prioritize restorative and economic justice for communities and individuals most harmed by federal prohibition and the War on Drugs, and language to strengthen workers’ rights, including eliminating unnecessary pre-employment of federal employees and random drug testing for cannabis.

The proposal is co-sponsored by Senators Michael Bennet (D-CO), John Fetterman (D-PA), Kirsten Gillibrand (D-NY), John Hickenlooper (D-CO), Ben Ray Luján (D-NM), Alex Padilla (D-CA), Gary Peters (D-MI), Tina Smith (D-MN), Raphael-MAD Keyff (D-MN), Raphael-MAD (D-MA). (D-OR), Patty Murray (D-WA), Elizabeth Warren (D-MA), and Peter Welch (D-VT).

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In one paper For federal lawmakers, the American Bankers Association (ABA) called for passage of the SAFE Banking Act — a proposal that seeks to normalize banking access for state-approved cannabis companies. In the letter, Naomi Camper, chief policy officer for the ABA, said the law “would improve public safety, help the government combat illegal financing, and provide a critical measure of security in response to the evolving legal landscape by giving cannabis businesses that operate in full compliance with state laws access to essential financial services.”

“Although almost every US state has legalized marijuana in some form, the uncertain legal landscape governing the revenue of these state-licensed businesses means that these businesses often operate on a cash basis, outside of the regulated banking system.” — Camper, on paper

Camper added that normalizing banking for cannabis businesses would “remove the barriers to banking these funds” and allow funds to flow more freely to non-cannabis businesses that work with the cannabis industry, including accountants, skilled traders, landlords and law firms.

Further, Camper notes that recent federal changes regarding cannabis—specifically rescheduling medical cannabis from Schedule I to Schedule III under the Controlled Substances Act—”emphasize the need for Congress to act.”

“Passage of this legislation would reduce the risk of illicit financing and increase financial transparency for cannabis and hemp-derived revenues,” Camper wrote in the letter. “Banks and other highly regulated financial institutions must adhere to strict anti-money laundering and anti-terrorist financing laws and regulations, conduct due diligence on their customers, screen transactions for suspicious activity and keep records.

Previous versions of the SAFE Banking Act have passed the House seven times, most recently in 2023. The current version of the legislation has been referred to the Committee on Financial Services and in addition to the Judiciary and Veterans Affairs Committees.

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