A marijuana leaf is on display at the Canna Pi Medical Marijuana Dispensary in Seattle, Washington, Nov. 27, 2012. REUTERS / Anthony Bolante
The U.S. House of Representatives passed legislation on Monday that would allow banks to provide services to cannabis companies in states where it is legal, a step toward removing what analysts say hinders the development of a national industry .
Lawmakers voted 321-101 to pass the bill and send it to the Senate.
The bill makes it clear that the proceeds of legitimate cannabis companies are not considered illegal and instructs federal regulators to establish rules for the supervision of such banking activities.
Banks were generally unwilling to deal with companies that sell marijuana or related products for fear that they could violate federal laws.
That has left companies in the marijuana industry with few options, including relying on just a handful of small financial institutions or doing business in cash.
The American Bankers Association has lobbied aggressively for the “SAFE Banking Act” bill.
“Banks are in a difficult situation as a result of the conflict between state and federal law, with local communities encouraging them to bank cannabis businesses and federal law forbidding it,” the group wrote in a letter to lawmakers Monday. “Congress must act to resolve this conflict.”
According to the National Conference of State Legislatures, 36 states have legalized medical cannabis, while 17 states now allow adult use.
Senate leader Chuck Schumer said in an interview with Politico in early April that he would try to promote legislation legalizing the use of marijuana for adults. When asked about the SAFE Banking Act, he said he would like to see such a bill as part of a more comprehensive measure – even if President Joe Biden did not support it.
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