Marijuana Banking Protections Stripped from Spending Bill
Despite bipartisan support for cannabis banking reform, opposition exists. Notably, on Thursday a House committee, led by Republicans, have removed from key spending bill from the Financial Services and General Government (FSGG) provisions that would protect banks working with state-legal marijuana businesses. The protections were initially included in the bill to prevent federal penalties being levied on banking institutions when dealing with cannabis companies operating legally under state laws. Actions like these have highlighted potential risks that cannabis businesses face when forced to operate as cash only.
Rep. Steny Hoyer (D-MD), a staunch critic of the removal has emphasized that safety and transparency are paramount. Rep. Dave Joyce (D-OH), co-chair of the Congressional Cannabis Caucus has also expressed disappointment and states banking access is critical in avoiding illicit financial activities and public safety issues. He is determined to continue to advocate for proper banking access for state-legal cannabis businesses. “While the provisions maintain strong bipartisan support, as chairman, I will work to alleviate their concerns but will not delay my responsibility to fund the government and therefore my legislation in the meantime,” Joyce said. “However, let me be clear, I will not abandon this effort in Congress and will continue to work with my colleagues in good faith to ensure they become law.”
The marijuana banking reform debate highlights a disconnect between state and federal law. Removal of vital protections that would assure these businesses safe and transparent banking industry access is a setback for the industry. “With over 40 states enacting some degree of cannabis reform, it is past time that the federal government respect the will of these states,” Joyce said in a statement on Thursday. “This issue is especially pertinent as cannabis regulations have been proven to increase public safety and quality of life for Americans.”
If you have any questions, please contact one of the authors or a member of the Miller Johnson Cannabis practice group.