Business
Prospects seem rosier for Senate passage of cannabis banking reform – but no guarantee
The push to pass major federal cannabis banking reform resumes in earnest Thursday during a Democratic-controlled U.S. Senate Banking Committee hearing about the challenges that a largely cash-based industry poses to small businesses and employees.
Guaranteed to enter the conversation is the much-anticipated Secure and Fair Enforcement (SAFE) Banking Act, which a bipartisan group of lawmakers in both chambers of Congress reintroduced in late April.
As observers note, the House of Representatives has passed SAFE Banking in some form seven times under Democratic leadership.
Prospects in Republican House Speaker Kevin McCarthy’s chamber are less certain, but the Senate is understood to be the main obstacle.
The Senate has never voted on the proposal, either on the floor or in committee, despite vocal support from Majority Leader Chuck Schumer, who on Saturday repeated an earlier (and unfulfilled) promise to get banking reform done.
It’s believed President Joe Biden would sign the bill into law if it were to reach his desk.
If he did so, federal banking regulators would be prohibited from punishing financial institutions that offer basic banking services to marijuana businesses following state law.
‘Step forward’
The fact that senators are formally entertaining the topic on Capitol Hill is by itself reason for enthusiasm among marijuana industry executives and representatives.
The bill’s introduction boosted shares in publicly traded multistate operators two weeks ago, which observers note is a sign of how little progress Congress has made on marijuana reform since the arrival of the multibillion-dollar U.S. cannabis industry.
Thursday’s hearing is best understood as “a meaningful step forward,” said Reggie Babin, a former chief counsel to Schumer who is now senior counsel at Akin Gump, an influential Washington DC law and lobbying firm.
“This appears to be setting up SAFE Banking for a thorough consideration in the Senate, which suggests we are moving past where we were,” Babin told MJBizDaily.
“This is a perquisite for a committee vote, which is a perquisite to floor consideration.”
But advancement to the floor of the full Senate for an up-or-down vote isn’t expected to happen this week.
The bill itself is not currently scheduled to receive full scrutiny and possible amendments in what’s called the “markup process,” generally considered a perquisite for full Senate consideration.
The timeline on that is ambiguous.
Another committee hearing with a markup will follow “soon,” staffers for Ohio Democratic Sen. Sherrod Brown, the committee chair, vowed to MJBizDaily via email.
There is bipartisan agreement on at least that much, as Ryann DuRant, a spokesperson for Republican Sen. Tim Scott, the ranking Republican member on the committee, told MJBizDaily.
“Ranking Member Scott has called for SAFE Banking to go through regular order so members of the Senate Committee on Banking, Housing, and Urban Affairs have the opportunity to debate and contribute to the bill,” she wrote in an email.
“The Ranking Member looks forward to a robust discussion on the topic in this week’s hearing.”
Observers say the list of witnesses that have been called to appear before the committee on Thursday might indicate the tenor of the conversation.
As of Monday, the only witnesses were Sens. Jeff Merkley, Democrat of Oregon, and Steve Daines, Republican of Montana, the current Senate sponsors who have sponsored the bill previously.
“Daines has always called for the bill to go through regular order and is glad that Senator Brown finally scheduled a hearing for the SAFE Banking Act,” Rachel Dumke, a Daines spokesperson, told MJBizDaily in an email.
“SAFE Banking has passed the House seven times with broad bipartisan support and the Senator believes there is the strong bipartisan support in the Senate and he will be working to build a consensus here to get the bill passed.”
The process
Experts in Senate procedure note that SAFE Banking does not need a markup or a committee vote to become law.
They also note that efforts to attach SAFE Banking to must-pass legislation such as the annual defense spending bill failed in the previous Congress, when the Senate ran out of time to consider SAFE Banking via “regular” order.
And cannabis advocates will recall the Senate held a hearing in 2019 that’s very similar to what’s scheduled for Thursday.
But enough has changed in the ensuing four years for industry advocates to be bullish, said Aaron Smith, executive director of the DC-based National Cannabis Industry Association, which lobbies for small and medium-sized marijuana businesses on Capitol Hill.
The number of states that have legalized adult-use marijuana has more than doubled, from 11 states to 22, with Maryland the next state scheduled to roll out recreational sales, on July 1.
Also, conservative strongholds such as Kentucky, the home state of Senate Minority Leader Mitch McConnell, have passed laws allowing medical marijuana.
Forty states have authorized full-fledged MMJ markets.
“This translates into significantly more representation of states with some kind of cannabis industry in the Senate, including on the Republican side of the aisle,” Smith wrote in an email.
“This coupled with the fact that the House has passed SAFE with uncommonly bipartisan majorities seven times and unprecedented institutional support for reform, gives us hope that the Senate will finally approve the legislation this year,” he added.
Ed Conklin, executive director of the U.S. Cannabis Council, also is encouraged, saying in an email that the hearing represents “a crucial step on the way to passing the SAFE Banking Act.”
In addition to blanket opposition to hitching SAFE to larger legislation, past Republican opposition to the bill, spelled out in a U.S. Department of Justice memo made public in early December, hinged on some ambiguities that the DOJ feared could complicate investigations of money laundering.
Current bill language reflects those concerns.
And it’s understood that progressive Democrats will not repeat earlier demands for SAFE to be packaged with social justice initiatives such as equity programs, but rather, the measure will be considered along with expungements for federal marijuana crimes as well as clarified permissions for cannabis users to legally own firearms.
Long odds, bad vote
The odds of SAFE passing, however, remain long.
Skeptics point out that the Senate has already considered a cannabis question this year and rejected it.
Under the Senate’s cloture rule, 60 votes are needed to end debate on a bill and bring it to an up-or-down vote.
On April 26, a motion to end debate and hold an up-or-down vote on a bill that would have allowed the Veterans Administration to run a clinical study on cannabis’ efficacy with chronic pain and PTSD in military veterans was rejected 57-42, with one abstention.
“I don’t think the hearing this week is going to suddenly usher SAFE Banking through the Senate,” said John Hudak, the director of Maine’s Office of Cannabis Policy and a former Brookings Institute fellow.
“But I think it starts the process of changing hearts and minds, which I think is very important.”
To get to 60 votes, he said, “you’ve got to pick off some people who are cannabis skeptics, and SAFE Banking is a nice comfortable place for some members to dip their toes into cannabis.”
However, “I am deeply skeptical the 118th Congress is going to be the one to push SAFE Banking through,” Hudak added.
Source: https://mjbizdaily.com/what-are-prospects-for-senate-passage-of-cannabis-banking-reform/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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