WASHINGTON—A congressional committee has voted to reject a measure to protect financial institutions that open accounts for marijuana businesses from being punished by federal financial regulators.
In response, supporters of the measure scrambled to craft a more limited measure focused on medical cannabis businesses, but it was ultimately withdrawn before a vote could take place.
The broader measure would have prevented the U.S. Department of Treasury from taking any action to "penalize a financial institution solely because the institution provides financial services to an entity that is a manufacturer, producer, or a person that participates in any business or organized activity that involves handling marijuana or marijuana products" in accordance with state or local law, noted Forbes in its analysis.
After a lengthy and impassioned debate during which at least 19 lawmakers spoke, the broader measure was defeated on a voice vote by the House Appropriations Committee.
As CUToday.info has extensively reported, despite the fact that a growing number of states are legalizing marijuana for recreational or medical use, many financial institutions have remained reluctant to work with cannabis businesses for fear of running afoul of money laundering laws under ongoing federal prohibition.