The Independent Community Bankers of America (ICBA), along with a coalition of 44 state community banking associations, is urging Congress to include legislation in the America COMPETES Act that allows legal cannabis businesses to access financial services and banking.
The legislation they are urging passage of is the Secure and Fair Enforcement (SAFE) Banking Act, which would establish a safe harbor for financial institutions that serve cannabis-related businesses in states that have legalized cannabis for medicinal or recreational use.
“The conflict between state and federal law has created legal uncertainty for community banks, inhibited access to the banking system for cannabis-related businesses, and created serious public safety concerns,” ICBA President and CEO Rebeca Romero Rainey said. “After the House has voted six times to pass this much-needed policy, ICBA, state community banking associations, and the nation’s community bankers urge Congress to retain it in the America COMPETES Act conference report.”
The SAFE Banking Act would not allow federal banking regulators to 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 on banks solely for serving state-compliant cannabis-related businesses.
ICBA has long supported the SAFE Banking Act and has testified before Congress on its behalf. The bill, which the Conference of State Banking Supervisors recently endorsed, has more than 180 co-sponsors in the House and more than 40 in the Senate.