More states legalize cannabis every year, yet banks and other financial institutions are hesitant to get involved in the billion-dollar industry for fear of federal retaliation under prohibition. There has been movement at a congressional level to resolve this problem and clear up the rules for financial institutions, but not enough movement yet to pass
It’s a matter of strategy but will it be the right strategy? Senate Majority Leader Chuck Schumer (D-NY) has indicated that he has his sights on ending cannabis prohibition rather than taking on smaller scale bills first. That is mixed news for financial institutions and cannabis advocates who have been pressing for the passage of
Lack of banking access has been a stumbling block for the billion dollar U.S. cannabis industry, and a federal bill aiming to change that may finally get enough traction this year for a vote. The Secure and Fair Enforcement (SAFE) Banking Act would change the regulatory landscape for financial institutions that provide services for cannabis-licensed
State-legal marijuana companies locked out of using financial services due to the federal prohibition of cannabis have been warned not to deceive banks about the nature of their business. Benjamin William Perry and Alex McFall of Bradley Arant Boult Cummings LLP law firm, writing for Lexology, said there’s a strong incentive for cannabis businesses to
Prior to the US House of Representatives voting to pass a marijuana banking bill for the fourth time, Congressional leaders were inundated with letters from state governors, attorney generals and treasurers as well as banking associations urging lawmakers to approve the measure. Twenty state governors plus the governor of the US Virgin Islands expressed their
The US House of Representatives passed a bill that would ensure banks could provide financial services to state-legal cannabis businesses without fear of federal reprisal. Following an earlier voice vote, the legislation – the Secure and Fair Enforcement (SAFE) Banking Act – received 321 votes in favor and 101 votes against. This marks the fourth
The trend seems to be ebbing. Recent federal data shows that banks and credit unions that report offering services to state-legal cannabis businesses are stabilizing for three consecutive quarters. The source The number of banks and credit unions that reported working with the industry declined consistently for almost a year - some attribute that to
It's been a tumultuous few years as the cannabis industry struggles to overcome long-standing stigmas and have access to essential business services that most take for granted. I'm talking about banking. Yes, the 'B' word has been a popular one as states continue to legalize cannabis for either medical or recreational use. When the IRS
Holding large sums of cash is too risky for Internal Revenue Service (IRS) personnel. Hmm. The agency would prefer electronic tax payments. Okay. They say the cash-based system in use now is tedious and risky. Absolutely. The cannabis industry has been clamoring for banking access. Cash is notoriously tricky to track. Rep. David Joyce (R-OH)
