Congress urged to open bank doors to marijuana industry United States
Bank officials and others have urged Congress to fully open the doors of the US banking system to the legal marijuana industry, a change that supporters say would reduce crime risks and resolve a litany of challenges for cannabis companies, from paying taxes to getting a loan.
Most Americans live in states where marijuana is legally available in some form. But there’s a problem when it comes to banks – most don’t want anything to do with money from the cannabis industry for fear it could expose them to legal trouble from the federal government, which still considers marijuana illegal.
That conflict has left many growers and sellers in the burgeoning industry in a legal dilemma, shutting them out of everyday financial services. It has also forced many businesses to operate only in cash, making them ripe targets for crime.
Banking, government and industry representatives at a House committee hearing in Washington, DC yesterday urged lawmakers to pass a proposal that would allow marijuana businesses to access loans, lines of credit and other banking services, while sheltering financial institutions from prosecution for handling cannabis-linked money.
California Treasurer Fiona Ma, whose state is home to the nation’s largest legal cannabis market, called the measure a critical step for the rapidly expanding industry.
Gregory S Deckard, who spoke on behalf of the Independent Community Bankers of America, said the cloud of legal uncertainty was inhibiting access to banks while creating safety hazards for businesses.
But others had concerns. Republican Congressman Blaine Luetkemeyer of Missouri said the proposal would create confusion while marijuana remained illegal at the federal level. He also questioned how banks would identify criminal operators.
The hearing came just days after Oregon Senator Ron Wyden proposed legislation that would give states a free hand to allow legal cannabis markets without the threat of federal criminal intervention.