Federal legislation designed to permit banks to engage with licensed marijuana businesses has now received 124 bipartisan sponsors in the US House of Representatives.
The SAFE Banking Act (H.R. 2891) has gained an additional sponsor, Congressmember Bonnie Watson Coleman (D-NJ), who joined the initiative yesterday. This proposed law aims to offer federal protections for banks and credit unions that provide financial services to state-legal marijuana businesses. These businesses include medical marijuana dispensaries in the 38 states where they are legal, and recreational marijuana stores in the 23 states where they are authorized.
Furthermore, the legislation would enable state-legal marijuana businesses to take standard IRS tax deductions, a practice currently forbidden.
In September, the Senate Banking Committee approved a Senate counterpart of the bill, known as the SAFER Banking Act, with bipartisan backing. Senate Majority Leader Chuck Schumer has committed to bringing the measure to a full chamber vote in the “weeks and months ahead.”
Recent surveys indicate that 63% of U.S. adults support Congressional measures to allow cannabis businesses access to essential financial services in states where cannabis is legally recognized, while 17% are opposed.
On May 21, the DEA published its proposed rules to reclassify marijuana from Schedule I to Schedule III in the Federal Register. While some believe this reclassification would enable banks to service medical marijuana dispensaries, it is not anticipated to affect the recreational marijuana industry as comprehensively as the SAFE and SAFER Banking Acts would.
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