WASHINGTON–Will the federal prohibition on cannabis finally end, allowing credit unions not serving the pot biz to finally do so while removing the constant threat of prosecution for those that already do?
Many in Washington believe the stars are aligning and that federal drug laws outlawing marijuana—which are increasingly in conflict with state laws–are increasingly likely to be changed. The reason: The exit of Jeff Sessions, a strong opponent of legalizing marijuana, as attorney general, and the increased number of Democrats in Congress following the mid-term elections.
‘There’s no question: Cannabis prohibition will end,’ one House Democrat told Politico.
“The new push by banks to handle financial transactions for the pot industry is the latest sign that politics of marijuana are rapidly changing in the nation's capital, as voters across the country back legalization,” said Politico in its analysis.
Rep. Ed Perlmutter, a Colorado Democrat who has taken the lead on legislation in the House, told Politico there was "a real opportunity" to move a bill aligning federal and state marijuana laws for banks and credit unions.
"We now have, I think, close to a majority of the nation's population that lives in states where some form of access to marijuana is legal," Rep. Denny Heck (R-WA) told the publication. "The businesses that either grow it or process it or retail it are operating under this terrible cloud because banks and credit unions aren't quite sure what the federal regulators will do to them if they provide those services."
Democrats Draw Up Plans
Before the November elections, some Democrats were already drawing up plans to tackle the issue if they won back the House, Politico reported.
Politico noted that both the Independent Community Bankers of America and CUNA have for the first time recently endorsed bills to ease rules for cannabis banking.
"If you're serving an electrician that does work at any stage of the supply line, there may be some risk to the financial institution in serving that," CUNA’s chief advocacy officer, Ryan Donovan, told Politico.