With nearly every state having legalized cannabis in some form, it is time for Congress to pass legislation to allow legal cannabis businesses to access banking services without fear of federal prosecution, 16 governors said in a letter to congressional leaders.
The SAFE Banking Act (H.R.9471/S.4942) would prevent regulators from prohibiting or discouraging financial institutions from serving cannabis businesses in states where it is legal. It would also clarify that proceeds from state-legal marijuana businesses are not considered proceeds from unlawful activity under anti-money laundering laws. The American Bankers Association is among the many supporters of the bill.
In their letter, the governors called the SAFE Banking Act “common-sense legislation” that respects state decision-making authority while maintaining the current federal classification of cannabis.
“It does not require or encourage states to legalize cannabis, nor does it affect states that have chosen to maintain full or partial prohibitions on cannabis,” the governors said. “Instead, it provides a practical solution to the public policy challenges facing states that have legalized cannabis by ensuring that state-sanctioned businesses operating within their borders — and the non-cannabis businesses that provide essential services to those state-sanctioned businesses —can fully access the regulated banking system with the oversight and protection it provides.”
The governors noted that 21 states have collected more than $27.6 billion in tax revenues from legal cannabis sales since 2012, but state regulatory agencies have trouble depositing those tax payments, processing licensing fees and obtaining similar services because cannabis proceeds remain federally illegal.
“The SAFE Banking Act has garnered strong bipartisan support, both in its current and previous iterations, and provides a pragmatic solution that respects state sovereignty while addressing critical public safety and governance challenges,” they said.
The letter was signed by the governors of Maryland, Colorado, Connecticut, Delaware, Illinois, Kentucky, Maine, Massachusetts, Michigan, Minnesota, New Mexico, New York, Oregon, Virginia, Washington and Wisconsin.
