Congressman Dan Goldman Pushes to Allow Legal Cannabis Businesses to Be Integrated into the Banking System
The ‘Secure and Fair Enforcement Banking Act’ Would Permit Legal Cannabis Businesses to Use Banks and Other Financial Services
Read the Bill Here
Washington, D.C. – Congressman Dan Goldman (NY-10) joined Congressman Earl Blumenauer (OR-03) in introducing the ‘Secure and Fair Enforcement Banking Act,’ which ensures that legal cannabis businesses would be able to access banking and financial services. Currently, many legal cannabis businesses are prohibited from using traditional and secure banking systems, opening the door to potential tax evasion and increasing the risk of being targeted by criminal activity.
The ‘SAFE Banking Act’ provides a safe harbor that prevents banks from being penalized for engaging with cannabis businesses, thereby promoting a safer banking environment and enhancing access to financial services. Additionally, it sets requirements for reporting suspicious activities, provides compliance guidance, and includes provisions for related hemp businesses, facilitating their integration into the mainstream banking system.
“As the legal cannabis industry blossoms and we move to tax and regulate marijuana, we must give businesses access to our regulated banking system,” Congressman Dan Goldman said. “It is impossible to adequately regulate this fledgling industry if cannabis businesses are forced to rely on all-cash transactions. This common-sense legislation is a step in the right direction that will bring the cannabis industry out of the shadows entirely.”
To address the safety concerns resulting from these state legal businesses being shut out of banking services, the ‘SAFE Banking Act’ would prevent federal banking regulators from:
Prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as a lawyer or landlord providing services to a legal cannabis business)
Terminating or limiting a bank’s federal deposit insurance primarily because the bank is providing services to a state-sanctioned cannabis business or associated business
Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses
Taking any action on a loan to an owner or operator of a cannabis-related business
Congressman Dan Goldman is committed to reforming the criminal justice system and decriminalizing marijuana nationwide.
In May, Congressman Goldman urged the Biden Administration grant clemency to individuals incarcerated for non-violent marijuana offenses. Additionally, Goldman cosponsored the ‘Marijuana Opportunity Reinvestment and Expungement Act’ that would decriminalize marijuana and require resentencing and expungement of prior marijuana convictions, including for juvenile offenders.
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