ARLINGTON, Va.–The National Association of State Credit Union Supervisors (NASCUS) said it is encouraged by a congressional hearing on serving cannabis-related businesses, adding Congress needs to act to eliminate federal prohibition.
As CUToday.info reported here, the House Financial Services Subcommittee on Consumer Protection and Financial Institutions held a hearing, “Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses,” at which one credit union representative testified.
During the hearing, the Committee considered a discussion draft of the Secure and Fair Enforcement Banking Act of 2019 (SAFE Banking Act), which “would harmonize federal and state law concerning cannabis-related businesses and allow these businesses access to banking services.”
The chief concern remains cannabis remains illegal under federal law even though numerous states have legalized the marijuana business. The result is credit unions serving marijuana businesses are always at risk of being prosecuted for violating federal law.
A ‘Big Deal,’ But…
“Since Colorado and Washington legalized recreational cannabis in 2014, NASCUS has called on federal authorities to resolve the ambiguity around serving legal state cannabis businesses and related businesses,” said NASCUS President and CEO Lucy Ito. “Currently, state regulators and the financial institutions that they supervise are suspended between the uncertainty of federal enforcement action and the state mandate to serve the financial needs of their local communities. While we are encouraged by today’s hearing and agree with Representative Perlmutter that the hearing is a ‘big deal’ for financial institutions, Congress should continue to act and swiftly pass legislation that would clarify the permissibility of financial institutions to serve state-authorized cannabis-related businesses.”
NASCUS said it will explore the cannabis banking issue in depth at its inaugural “State Legalization of Cannabis and Banking Symposium.” The symposium will be held June 25-26 in Universal City, Calif., in the greater Los Angeles area and feature industry experts and stakeholders.
“The decision to provide financial services to cannabis-related businesses is filled with pros and cons for credit unions and their regulators, and at this meeting NASCUS will bring all parties together to thoroughly discuss what must be considered when serving or not serving this market,” added Ito.