WASHINGTON—Banking associations from all 50 states and one U.S. territory are calling on the Senate Banking Committee to advance bipartisan legislation that would protect financial institutions that service marijuana businesses from being penalized by federal regulators.
The state associations sent a joint letter to leaders of the panel this week, writing that current law forces state-legal businesses to operate on a cash basis, which poses a safety risk, complicates enforcement efforts and could damage the economy, reported Marijuana Moment.
“As a result of congressional inaction and the lack of regulatory clarity, legal cannabis businesses must operate on an all-cash basis, subjecting their employees and the general public to serious risk of criminal activity and harm,” the associations wrote. “These businesses also must remit payments for state taxes and licensing fees in cash, denying the states the efficiencies and safety of more modern payment methods. This in turn significantly increases state compliance auditing costs, since operating on an all-cash basis leaves no paper trails for auditors to follow.”
‘Serious Public Safety Concerns’
“Leaving the cannabis industry unbanked presents serious public safety, revenue administration, and legal compliance concerns and must be remedied immediately,” the groups added.
The associations complained that the Senate hasn’t acted on companion legislation since the House Financial Services Committee approved their version with a bipartisan vote of 45 to 15 in March.
“Although we do not take a position on the legalization of marijuana, our members are committed to serving the financial needs of their communities—including those that have voted to legalize cannabis,” the associations said. “We believe federal action is necessary and support a solution that would allow banks to serve cannabis-related businesses in states where the activity is legal.”
Narrow Focus Needed
“We also support a thorough examination of the issue and potential legislative solutions by the committee,” the letter continued. “We appreciate that there are broader public policy questions surrounding cannabis legalization that merit debate, but we ask that you focus narrowly on the urgent banking problem at hand, which is within your power to resolve. Doing so will reap immediate public safety, tax and regulatory benefits while Congress contemplates broader decisions about national drug policy.”