Federal banking regulations have not caught up to the vast majority of states that now permit some form of legal cannabis commerce. One of the problems caused by the federal conflict with effective cannabis laws is that many financial institutions are hesitant to bank the legal cannabis industry due to fear of running afoul of federal money laundering laws. This has forced many legal, compliant cannabis businesses to operate on an all-cash basis, causing a headache for regulators tasked with overseeing the industry and an outright public safety risk for the hundreds of thousands of cannabis industry workers across the country.
In addition to broad reforms, NCIA supports the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 2215 & S. 1152), bipartisan legislation that would provide safe harbor to financial institutions doing business with the state-legal cannabis industry.
No matter where one stands on the broader issue of marijuana legalization, it’s clear that nobody benefits when much of our nation’s existing $10+ billion legal cannabis industry is forced to operate outside the banking system.
NCIA is steadily building support for the SAFE Banking Act in both chambers of Congress and are pleased that the legislation currently has more than 100 cosponsors between the House and Senate. In the interim, NCIA is also seeking an administrative solution to this problem.
Resources
Federal Policy Overview: Banking, Taxes, and DOJ Protections Watch the video: The Industry's Banking Crisis ExplainedNCIA is leading the cannabis industry's unified and coordinated campaign to ensure our business sector is treated fairly and has the opportunity to reach its full potential. Now - more than ever - is the time to invest in your business and the future of the industry by becoming a member.
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