For a long time banks have been unwilling to do business with marijuana companies due to the drug being illegal on a federal level.
Things may be soon changing. This week the United States House of Representatives passed legislation that would let banks provide services to marijuana companies in states where the plant is legal.
Currently thirty-six states have legalized medical cannabis while 17 states now allow adult use, according to the National Conference of State Legislatures.
In an overwhelming vote, the lawmakers voted 321 to 101 to approve the bill, which now heads to the Senate.
According to the bill, proceeds that come from legitimate cannabis businesses would not be considered illegal. This directs federal regulators to make rules for how they would supervise such banking activity.
Marijuana businesses have had to rely on just a handful of small financial institutions or doing business in cash in order to get by.
The American Bankers Association has lobbied aggressively for the “SAFE Banking Act” bill and in a letter to lawmakers this week wrote, “Banks find themselves in a difficult situation due to the conflict between state and federal law, with local communities encouraging them to bank cannabis businesses and federal law prohibiting it. Congress must act to resolve this conflict.”
Senate Majority Leader Chuck Schumer has been vocal in his support to advance marijuana legislation and make the plant legal on a federal level for adults.
When previously asked about the SAFE Banking Act, he said he would like to see such a bill move forward as part of a more comprehensive measure.
