WASHINGTON–Even as an increasing number of states—and their credit unions—are counting on Congress to change federal law to legalize cannabis-related businesses, the likelihood of Congress acting seems iffy at best, according to one new analysis.
Legislation that would align federal cannabis laws with those in many states is back in Congress for a fourth time, again championed by Rep. Ed Perlmutter (D-CO), lead sponsor on the territories backing the Secure and Fair Enforcement Banking (SAFE) Act.
As CUToday.info reported, 17 state treasurers and attorneys general from 34 states and four U.S. territories recently signed a joint letter urging passage, arguing under current law, licensed marijuana businesses are being pushed out of the banking system, leaving them dependent on cash, a target for crime and harder to tax and regulate.
“The biggest issue is building a political campaign around the issue,” said Michael Correia, director of government relations for the National Cannabis Industry Association, told the Associated Press.
He said that while most members of the U.S. House support a banking fix — over a third of members have co-sponsored the House bill — support is weaker in the Senate, the AP reported, adding the chairman of the Senate Committee on Banking, Housing and Urban Affairs, Mike Crapo (R-ID) has yet to commit to holding a hearing.
‘Due-Diligence’ Needed
While the House Financial Services Committee approved the bill in March, 15 of 26 Republicans voted against it, including Rep. Patrick McHenry of North Carolina, the committee’s ranking member.
“We need to ensure we’re doing our due diligence before proceeding,” McHenry said in a statement to the AP. “One committee hearing is not enough to fully understand the consequences of this bill.”
The AP noted that in a March letter to the committee’s Democratic leaders, McHenry and Republican U.S. Rep. Blaine Luetkemeyer of Missouri listed 15 questions the legislation raises, such as how it would affect enforcement of anti-money laundering regulations.
Nearly 500 banks and credit unions nationwide serve the marijuana industry, according to the latest report from the Treasury’s Financial Crimes Enforcement Network.
As CUToday.info reported here, in Wisconsin, numerous retailers selling CBD-oil products, which are based on a compound found in cannabis, say their accounts are now being closed by financial institutions.
CU Included in Report
The AP report did cite Safe Harbor Services, a CUSO of Partner Colorado Credit Union, for its work in helping credit unions and banks in about 10 states create systems and procedures for managing cannabis accounts.
Safe Harbor itself currently manages 137 marijuana-related accounts for financial institutions nationwide, in addition to 325 marijuana-related accounts managed by Partner Colorado Credit Union.
“At any given time, we typically have a waiting list and a queue of accounts that we are trying to open up and process that’s over 100 deep,” Katrina Skinner, president of Safe Harbor Services, told the Associated Press. “I would say there’s still a huge demand, especially in newer states where legalization has just happened.”
Rep. Perlmutter expects his legislation will eventually pass.
“Every year, the support in Congress is going to grow,” he told the AP. “You can’t put the genie back in the bottle. We’re not going to go backwards.”