American Bankers Association Calls For ‘Swift Passage’ Of Marijuana Banking Bill Ahead Of Senate Committee Hearing
May 9, 2023By Kyle Jaeger
The American Bankers Association (ABA) is renewing its call for the passage of a bipartisan marijuana banking bill that was refiled last month.
Days before the Senate Banking Committee is scheduled to discuss the issue at a marijuana-focused hearing, ABA sent a letter to congressional leadership voicing “strong support” for the Secure and Fair Enforcement (SAFE) Banking Act.
The association said that this “important legislation would help bring certainty to an important issue that has become a challenge for so many of our nation’s communities and the banks that serve them.”
“The SAFE Banking Act is an urgently needed, and widely supported, bipartisan solution that will allow banks to handle not only the proceeds from both state-licensed cannabis businesses and the ancillary businesses—accountants, skilled trades, landlords, law firms, and other service providers—those businesses rely upon to operate, but also accept deposits from and make loans to employees of those businesses,” the letter says.
While the measure has passed the House several times in recent sessions, it’s repeatedly stalled in the Senate under both Democratic and Republican control. This time, however, the Senate is taking the lead, starting with Thursday’s Banking Committee hearing.
“Federal law currently prevents banks from banking cannabis businesses and these ancillary businesses, without fear of federal sanctions,” ABA said. “As a result, this industry is operating primarily in cash, which is not only a public safety risk, but also undermines the ability for regulators, tax collectors, and law enforcement to monitor the industry effectively.”
The association said that it does not take a position on federal cannabis legalization but that its “member banks find themselves in conflict between state and federal law, with local communities encouraging them to bank cannabis businesses and federal law prohibiting it.”
ABA has consistently advocated for the SAFE Banking Act—with letters to Congress, polling that shows public support for the financial reform and events where lawmakers have promoted the legislation.
