A marijuana leaf is displayed at the Canna Pi Medical Marijuana Dispensary in Seattle, Washington, on November 27, 2012. REUTERS / Anthony Bolante
The U.S. House of Representatives on Monday passed legislation that would allow banks to provide services to cannabis companies in states where it is legal, a step toward eliminating what analysts say is a barrier to the development of a domestic industry.
Lawmakers voted 321-101 to pass the bill and send it to the Senate.
The bill clarifies that revenues from legitimate cannabis companies would not be considered illegal and orders federal regulators to make rules on how they would oversee this banking activity.
In general, banks have been reluctant to do business with companies that sell marijuana or related products, for fear they could affect federal laws.
This has left companies in the marijuana industry few options, such as relying only on a handful of small financial institutions or doing business in cash.
The American Bankers Association has aggressively pushed for the “SAFE Banking Act” bill.
“Banks are in a difficult situation because of the conflict between state and federal law, and local communities are encouraging them to bank cannabis companies and the federal law that prohibits it,” the group wrote in a letter to lawmakers this Monday. “Congress must act to resolve this conflict.”
Thirty-six states have legalized medical cannabis, while 17 states already allow the use of adults, according to the National Conference of State Legislatures.
Senate Majority Leader Chuck Schumer, in an interview with Politico in early April, said he would try to advance legislation legalizing adult marijuana use. Asked about the SAFE banking law, he said he would like this bill to move forward as part of a more comprehensive measure, even if President Joe Biden did not support it.
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