The House Appropriations Committee took up and defeated language known as the Safe Banking Amendment offered by Congressman Dave Joyce (R-OH) on Wednesday, June 13th.
If adopted, regulators would not be authorized to use federal funds to threaten sanctions against banks working with marijuana-related businesses and entrepreneurs.
The defeat of the Safe Banking Amendment was not a vote about marijuana, but rather it was about normalizing a nascent industry that serves hundreds-of-thousands of customers in the majority of US states where cannabis is currently regulated. Once these companies have an easier time conducting their day-to-day operations, then they should be willing to offer more consumer-friendly prices instead of inflating them at the point of sale to cover backend costs associated with operating as an all-cash business.
Currently, hundreds of state-legal, licensed, and regulated businesses do not have access to the banking industry and are unable to accept credit cards, deposit revenues, or write checks to meet payroll or pay taxes. This situation is untenable. No industry can operate safely, transparently, or effectively without access to banks or other financial institutions. Congress must move to change federal policy so that these growing number of state-compliant businesses, and their consumers, may operate in a manner that is similar to other legal commercial entities.
As an appropriations amendment, this funding restriction would have only been in place for one year.
There is pending bicameral legislation introduced by Representative Perlmutter (D-CO) and Senator Jeff Merkley that the banking amendment was based, known similarly as the SAFE Banking Act. You can click here to send a message to your lawmakers in support of that legislation.