Independent Community Bankers of America (ICBA) and most state community banks are asking Congress to pass cannabis banking reform, which is currently before a bicameral conference committee, reported Marijuana Moment.
The national financial group—joined by 44 state community banking associations throughout the country— is pushing for the inclusion of the bipartisan Secure and Fair Enforcement (SAFE) Banking Act as part of the America COMPETES Act.
In a letter to congress, the ICBA and its state affiliates said: "The cannabis banking bill would create a safe harbor from federal sanctions for financial institutions that serve cannabis-related businesses (CRBs), as well as the numerous ancillary businesses that serve them, in states and other jurisdictions where cannabis is legal.”
ICBA president and CEO Rebeca Romero Rainey noted that the conflict between state and federal law poses a great deal of uncertainty.
“The conflict between state and federal law has created legal uncertainty for community banks, inhibited access to the banking system for cannabis-related businesses, and created serious public safety concerns. After the House has voted six times to pass this much-needed policy, ICBA, state community banking associations, and the nation’s community bankers urge Congress to retain it in America COMPETES Act conference report,” Romero Rainey said.
“After the House has voted six times to pass this much-needed policy, ICBA, state community banking associations, and the nation’s community bankers urge Congress to retain it in America COMPETES Act conference report."
Last week, the GOP Senate Sen. Steve Daines (R-MT), who is the sponsor of a bill to protect banks that work with state-legal marijuana businesses, released an ad featuring the CEO of the Montana Bankers Association, Cary Hegreberg in which he explains what he sees as the benefits of the incremental reform legislation.
“Banks are really the lifeblood of virtually every community in Montana,” Hegreberg, said in the ad. “It’s going to be very difficult, unless the SAFE Banking Act passes, for marijuana-related businesses to actually set up accounts and do financial transactions in the way most of us do,” Hegreberg said.
U.S. Conference Of Mayors Gets Involved
During its 90th annual meeting, the U.S. Conference of Mayors approved a resolution demanding that Congress pass a bill to safeguard banks that work with state-legal marijuana businesses.
The proposal focused on marijuana banking reform. The Conference also expressed its support for the bipartisan Secure and Fair Enforcement (SAFE) Banking Act, which would give cannabis companies normalized access to banking and financial services and allow dispensaries to accept credit cards. The SAFE Act passed in the U.S. House six times but has never made it to the upper chamber.
SAFE: A Solution For Marijuana Businesses?
The Senate has been under pressure from all sides over the last few months to pass the SAFE Banking Act. Now, senators are trying to push for marijuana banking legislation to be included in a bigger package aimed at improving U.S. competitiveness, which would provide more of a chance for the bill to become law.
SAFE aims to protect financial institutions that wish to provide their services to state-legal marijuana businesses. Some industry experts believe the bill has a better chance of passing the Senate than the MORE Act, which would remove cannabis from the Controlled Substances list and allow states to legalize its production and sale free from federal interference. It looks like the measure is gaining more support over time from both Democratic and Republican members.
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