Independent Community Bankers of America (ICBA) announced its support this week for legislation opening traditional banking systems to cannabis-related businesses.
The Secure and Fair Enforcement Banking Act would enhance public safety and address regulatory compliance concerns about financial institutions serving cannabis-related businesses in states where cannabis is legal.
For states where cannabis is legalized, the legislation would ensure federal banking regulators may not threaten or limit a bank’s deposit insurance, downgrade a loan, prohibit or discourage the provision of banking services or take any other prejudicial action solely because it serves a cannabis-related business.
“The conflict between state and federal law on cannabis-related businesses has created significant legal and compliance concerns for financial institutions that could provide needed banking services to these companies,” Rebeca Romero Rainey, ICBA president and CEO, said. “This uncertainty has forced cannabis-related businesses to operate mostly in cash, which presents a significant public safety risk. The Secure and Fair Enforcement Banking Act would help eliminate this risk in states where cannabis is already legal.”
While cannabis remains illegal at the federal level, ICBA does not advocate its legalization.
The ICBA has praised House and Senate lawmakers who have introduced the legislation, noting the nation’s community bankers are looking forward to working with lawmakers to advance the bill.