Cannabis banking protections provided in congressional spending bill

Banks that serve lawful marijuana businesses would be protected from a crackdown by financial regulators such as the U.S. Department of Treasury under a provision in a draft congressional spending bill.

The House Financial Services and General Government subcommittee is scheduled to mark up the bill on Monday night, so it’s possible there could be changes.

The provision would offer a similar though more narrow protection as the SAFE Banking Act, which was passed by a key U.S. House Committee in late March but still needs full approval from the House and Senate.

One big difference: The spending bill measure would be in effect only for the next fiscal year, while the Secure And Fair Enforcement (SAFE) Banking Act would be enshrined in law until amended.

In addition, the spending provision doesn’t protect financial institutions from possible enforcement by the U.S. Department of Justice, which has a separate spending bill.

However, the measure in the Financial Services spending bill would prohibit financial regulators from spending money to go after financial institutions that do business with lawful cannabis companies.

According to the provision:

“None of the funds made available in this Act may be used to penalize a financial institution solely because the institution provides financial services to an entity that is a manufacturer, a producer, or a person that participates in any business or organized activity that involves handling marijuana, marijuana products, or marijuana proceeds, and engages in such activity pursuant to a law established by a State, political subdivision of a State, or Indian Tribe ….”

Meanwhile, congressional lawmakers hope the SAFE Banking Act will reach the House floor as soon as this month. A companion bill has been reintroduced in the Senate.

6 comments on “Cannabis banking protections provided in congressional spending bill
  1. William Ervin on

    Why can’t our government agree with the majority of the population and legalize marijuana and tax appropriately. This is a no brained guys we want you to tax our legal marijuana. We want to pay our share of taxes. We need the income for survival of the less fortunate. Our veterans are in pain , legal medicine in the way of cannibus oil can cure our citizens that gave their life for us. Why deny any American from what was put on this earth to heal our bodies and sole. Gods gift for survival was cannibus that’s why we have cannabinoid sin our body. Marijuana heals. Just deal with it.

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  2. David Pulver on

    Marijuana is a nonaddictive substance that can cure many diseases. You cannot overdose on it. Many people are extremely concerned about the number of people dying every day from overdosing because of addiction to pain killers,opoids,cocain,and heroin. There are numerous crimes associated with addictive drugs such as armed robbery, breaking and entering, burglary, grand theft, and murder. Marijuana is not one of them. The effects of to much marijuana wear off and are gone with 6-8 hrs sleep. The millions to billions of dollars in tax revenue associated with the sale of marijuana is accountable. Where the taxes on cocain and heroin are non existant.

    Reply
  3. CARY RANDOW on

    I insure many cannabis employers from seed to sale. They are law abiding and gracious business people who are committed to helping people and doing the right thing. We must fully recognize, not stigmatize, their contributions to our society. The more we legitimize this business the better it will get. I believe future medical breakthroughs will be forthcoming when we treat this business as an emerging megdical field that is just getting its momentum. Lawmakers do the right thing and remove the artificial shackles that only harm those who need it most!

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  4. Sandor on

    This is a step in the right direction. Currently, banks won’t even deal with Cannabis-related businesses that have nothing to do with marijuana. It’s time that the stigma behind cannabis products are abolished, and that the financial industry is given the green light to conduct business with these companies.

    Reply

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