Governors Call for Cannabis Banking Regulations
A bipartisan coalition of governors from 21 states, two territories, and the mayor of the District of Columbia called on Congressional leadership to pass the Secure and Fair Enforcement (SAFE) Banking Act, which would remove legal limitations and allow financial institutions to bank with state-licensed cannabis businesses.
The letter reads in part:
“On September 21, 2021, the U.S. House of Representatives added the SAFE Banking Amendment by voice vote to the NDAA. The SAFE Banking Amendment will allow cannabis businesses to access normal banking services, which will transition fully cash-based cannabis transactions into the financial system where they belong.
“Thirty-seven states, four U.S. territories, and the District of Columbia have passed some form of recreational or medical cannabis legalization measures. Medical and recreational cannabis sales in the U.S. were estimated to total $17.5 billion last year, but because of antiquated federal banking regulations, almost all cannabis transactions are cash-based. Not only are cash-only businesses targets for crime, cannabis businesses are further disadvantaged compared to other legal businesses by being unable to open bank accounts or obtain loans at reasonable rates. The cannabis industry is legal in some form in the majority of U.S. states and it is too large of a market to be prohibited from banking opportunities.”
