As part of a large-scale bill, banking associations that represent all 50 states and one U.S. territory, are pushing the senate to pass marijuana banking reform.
The associations have sent a letter to Senate leaders this week, urging them to include marijuana banking reform in a large-scale manufacturing bill that is heading to bicameral conference.
According to the American Bankers Association (ABA) and the state associations said, the Secure and Fair Enforcement (SAFE) Banking Act is an “urgently needed, and widely supported, bipartisan legislative solution to allow banks to handle the proceeds from state-licensed cannabis businesses and the accountants, skilled trades, landlords, law firms, and other service providers they rely upon for legal operations.”
The House included the reform in its version of the America COMPETES Act. This is the sixth time that the chamber has advanced the legislation, but the provision was stripped in the Senate.
The banking groups believe the current lack of banking access for cannabis businesses means that the “industry is operating primarily in cash, which causes significant public safety concerns and undermines the ability of cannabis regulators, tax collectors, law enforcement and national security organizations to monitor the industry effectively.”
“The SAFE Banking Act is a narrowly tailored solution designed to bring this growing industry into the regulated banking system and provide much-needed visibility into its financial activity,” the letter says. It argues the measure would promote transparency and improve tax collection.
“The inability of the state-licensed cannabis industry to access safe and regulated financial services is a pressing concern for so many of our nation’s communities and the banks that serve them. With state-licensed cannabis businesses currently operating in 37 states and more states weighing legalization, we urge you to include the SAFE Banking Act in the compromise version of the COMPETES Act to address these critical issues as quickly as possible.”
