In response to reports of the federal government’s potential reclassification of cannabis as a Schedule III drug, the American Bankers Association (ABA) emphasizes the ongoing need for Congress to pass the SAFER Banking Act. This legislation would provide state-legal cannabis companies access to traditional financial services, addressing the legal complexities surrounding cannabis banking.
The ABA clarified its stance, stating that while it remains neutral on the legalization of cannabis, policymakers should recognize that reclassifying cannabis would not resolve the legal challenges banks face in serving the industry. According to the ABA, cannabis would still be illegal under federal law, leading many banks to refrain from providing services to cannabis-related businesses.
Blair Bernstein, speaking on behalf of the ABA, emphasized that the decision to reschedule cannabis would not alter the legal landscape for banking institutions. Bernstein highlighted the importance of passing the bipartisan SAFER Banking Act to alleviate the legal ambiguity surrounding cannabis banking and promote public safety, tax compliance, and financial transparency.
Morgan Fox, political director for NORML, echoed similar sentiments, suggesting that the reported federal reforms may not significantly impact financial institutions’ approach to cannabis banking.
A Congressional Research Service report from last year indicated that approximately 675 financial institutions are currently conducting business with cannabis companies. However, the extent of financial services provided to these businesses remains uncertain, as the report noted.
Despite the House’s repeated passage of banking reforms for the cannabis industry, known as the SAFE Banking Act, the legislation has yet to gain approval in the Senate. The ABA’s advocacy underscores the critical need for congressional action to address the challenges faced by financial institutions operating within the evolving landscape of cannabis legalization.
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