State Financial Regulators Tell Congress To Pass Marijuana Banking Protections In Manufacturing Bill

State Financial Regulators Tell Congress To Pass Marijuana Banking Protections In Manufacturing Bill
MJ moment

An organization that represents state financial regulators from across the U.S. is putting pressure on Congress to pass marijuana banking reform as part of a large-scale manufacturing bill that’s currently being finalized in a bicameral conference committee. The head of the Conference of State Bank Supervisors (CSBS) sent letters to Senate and House leaders, as well as conferees on the America COMPETES Act, on Wednesday, imploring the inclusion of language that would protect banks that work with state-legal cannabis businesses. “By granting a safe harbor for financial institutions, Congress can bring regulatory clarity to the financial services industry, address public safety concerns and ensure access to financial services for state-compliant marijuana and marijuana-related businesses,” CSBS Acting President James Cooper said. .@CSBSNews agrees that keeping the #SAFEBanking Act in the COMPETES Act will address public safety and regulatory clarity concerns when it comes to banking cannabis-related businesses. It's time for Congress to pass this bipartisan legislation. https://t.co/vpamwHph7W — American Bankers Association (@ABABankers) May 26, 2022 “I further ask for the safe harbor be extended to all financial services, including money transmission, as the adverse impact of the current inconsistency in state and federal law is not limited to depository institutions,” he said. Cooper said a majority of states have now legalized cannabis in some form, but “due to legal and regulatory risks associated with the contradictory federal and state laws, many financial institutions remain reluctant to conduct business with cannabis-related businesses.” “As a result, cannabis-related businesses are blocked by federal law from accessing financial services such as bank deposits, loans, money transmission and accepting credit cards for payment. This leaves marijuana businesses—legal under state law—operating largely as cash-only operations. In recent weeks, we have seen increased violent crime at cannabis businesses as criminals know these businesses keep large quantities of cash…

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Source : State Financial Regulators Tell Congress To Pass Marijuana Banking Protections In Manufacturing Bill

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