WASHINGTON—Will credit unions this year finally receive more guidance and clarity related to providing financial services to marijuana-related businesses (MRBs)?
Perhaps, suggested NAFCU Regulatory Affairs Counsel Kaley Schafer, who offered her take on the current landscape as well as insights into how the presidential election could affect federal legislation around cannabis-related businesses.
As CUToday.info has reported and as Schafer noted, the House last year passed the bipartisan Secure and Fair Enforcement (SAFE) Banking Act, which seeks to provide a safe harbor for credit unions and other lenders that serve MRBs in states that have legalized cannabis.
In addition, the NCUA was the first financial services regulator to issue interim guidance allowing federally insured credit unions to provide certain financial services to legally-operating hemp businesses as hemp-derived products became legal at the federal level under the 2018 Farm Bill. Other banking regulators later released similar guidance after the U.S. Department of Agriculture (USDA) issued an interim final rule in October that outlines provisions for legal hemp production, Schafer noted.
‘May Be Bigger Fish to Fry’
"Despite this movement, the future of a federal safe harbor to bank MRBs remains hazy," Schafer said. "Given the Senate's current stance on House-passed legislation, the fact that 2020 is an election year, and there may be bigger fish to fry, we may not see the successful passage of legislation. But, if we see a shift in Democratic control of the Senate, then it is very possible that legislation may be passed in 2021."
As CUToday.info also reported, Senate Banking Committee Chairman Mike Crapo (R-ID) has said he will oppose the SAFE Act in the upper chamber, but in December he did request public feedback on legislative components of potential legislation to be considered by the Senate.
Regarding the regulatory landscape on serving hemp-related businesses, Schafer noted that the USDA approved regulatory plans for six states. “Many more states have submitted plans to the USDA and are waiting for approval. Once a state submits a plan, the USDA has 60 days to approve, so we will see more states with approved regulatory plans in the coming months and throughout the year,” she said.