US Treasury Secretary Janet Yellen says that it would be “desirable” for the federal government to pass marijuana banking legislation, calling the current situation a “problem”.
(Photo credit: Eric Risberg / Associated Press).
Treasury Secretary Janet Yellen was questioned today during a House Appropriations Financial Services And General Government Subcommittee. During the meeting, Congressmember Dave Joyce (R-OH) questioned Yellen on the conflict between federal and state marijuana policies, in particular when it comes to banking regulations.
Joyce asked Yellen if she could tell him “what is presently this administration’s position on [the SAFER Banking Act]”?
“[The Department would] potentially welcome legislation in this area that would clarify for banks what their responsibilities are [in regards to state-legal marijuana businesses]. The fact that marijuana is outlawed by the federal government creates an impediment to the willingness to provide banking services to cannabis firms, and it creates all the problems that you’re familiar with.
She added that “I think legislation may be necessary to raise the comfort level that banks have with doing this business.”
Later in the conversation, Yellen called the current situation “a real problem”, saying “it would be desirable to have legislation that alleviated this problem.”
In the House of Representatives, the SAFE Banking Act has 107 sponsors, the most of any marijuana-related legislation. An updated Senate version of the bill, the SAFER Banking Act, has 36 sponsors.
Both the SAFE and SAFER Banking Acts would allow banks and other financial institutions (credit unions, for example) to provide banking services to state-legal marijuana businesses. This included debit and credit card services and access to business loans. The SAFE Banking Act was filed in April, while the SAFER Banking Act was filed in September.
The same month it was filed the SAFER Banking Act was passed through the Committee on Banking, Housing and Urban Affairs with bipartisan support. Earlier this month Senate Majority Leader Chuck Schumer said it’s a key priority of the Senate to pass the SAFER Banking Act this year.
According to polling released in October, by greater than a 2-to-1 margin “U.S. adults support Congress passing legislation that allows cannabis businesses to access banking services.”
