AURORA, Colo.–“Slow” progress doesn’t mean “no” progress on cannabis-related legislation, NCUA Board Member Rodney Hood told a meeting here, adding he fully expects Congress will finally lift the federal prohibition on serving the pot business.
Speaking to the NASCUS Cannabis Banking Symposium, Hood said the meeting was an opportunity to “focus in greater detail on an important issue that is at the forefront of all of our minds, which is the need to reform our banking laws to accommodate the change in legal status of cannabis and marijuana businesses in the United States.”
The NCUA board member said given the nature of the meeting everyone is already familiar with the key arguments in “favor of harmonizing banking laws and regulations for marijuana-related businesses,” as well as the need for reform.
‘Time for Action’
Instead, he said he wanted to use his remarks to reiterate a position he has expressed numerous times in the past, that “It is time for federal action to clarify and harmonize the laws and regulations surrounding the state-legal cannabis industry and marijuana-related businesses, so that this industry can take part in the legitimate financial services industry.”
As CUToday.info has reported, Hood has spoken out on a number of occasions, including in recent weeks, calling for such reform of laws that have made it very difficult for credit unions to serve cannabis-related businesses. Hood said his objective is to provide “constructive criticism and a spur to action” for Congress.
“Regardless, it’s almost a year since I planted my flag, so to speak, yet in that time, there’s been, unfortunately, little measurable movement on this issue at the federal level,” said Hood. “Frankly, I find that discouraging. Of course, I well understand how the wheels of legislative change tend to move rather slowly. I’m not a stranger to the legislative process, having worked in and around government for much of the last 30 years.
But this is one of those times when the way forward seems rather clear, so it’s understandable if there’s disappointment or frustration with the slow pace of progress.”
The Highlights
Hood, saying slow progress doesn’t mean no progress, highlighted:
- The House of Representatives passed the Secure and Fair Enforcement (SAFE) Banking Act to normalize banking activities for cannabis businesses. (That legislation remains stalled in Congress.)
- There has been “reassuring progress” in state capitols around the nation, where policymakers and regulators are moving forward to address the banking and tax status of cannabis businesses. “One might wish the most constructive efforts weren’t happening at the state level, since that runs the risk of creating a patchwork of reforms when we need the clarity and coherence of an over-arching federal solution,” said Hood. “But we should absolutely commend these state officials are working to address this issue in the absence of Congressional action.”
- A community of federal executive branch regulators is trying to be proactive and prepared to take action when Congress does pass some form of legislation. Hood said NCUA has an internal working group focused on preparing for cannabis legalization and is planning a roundtable for examiners and industry leaders to share information.
- Hood said he has suggested establishing an interagency working group among federal financial regulatory agencies so that the various regulatory entities can have a clear channel for communicating and coordinating actions.
- There has been a “tremendous shift” in terms of leading policymakers addressing this issue with greater clarity.
- FinCEN has published a Marijuana Banking Update.
Not Talked About in the Past
“One thing I note in my talks on this issue is that in my previous tenure on the NCUA, back in 2005-2009, I probably wouldn’t have bothered to speak to an event about marijuana legalization and financial services, and for that matter I probably wouldn’t have been invited,” said Hood. “So, the fact that we’re having discussions now is a testament to the remarkable pace of change…I would say that the writing on the wall is clear, and that while full legalization of cannabis at the federal level has not happened, we should see it as a foregone conclusion.”
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