The governors of 24 states and U.S. territories sent a letter to congressional leaders on Thursday calling on lawmakers to pass legislation that would permit financial institutions to provide banking services to the regulated cannabis industry. The letter from the bipartisan group of two dozen governors seeks passage of the Secure and Fair Enforcement (SAFE) Banking Act, which was approved by the House of Representatives in September as part of a comprehensive defense spending authorization bill.
In the letter, which was sent to Senate Majority Leader Chuck Schumer of New York, Speaker of the House Nancy Pelosi and other Democratic and Republican leaders in Congress, the governors of 21 states, Washington, D.C., the U.S. Virgin Islands and Guam, call for provisions of the SAFE Banking Act to be included in the final version of the National Defense Authorization Act for the 2022 fiscal year.
Relief for a Cash-Heavy Industry
If passed by the Senate and signed into law, federal banking regulators would be prohibited from penalizing banks that choose to serve cannabis firms doing business in accordance with state law. Under current regulations, banks are subject to penalties under federal money laundering and other laws for servicing such companies, leaving the cannabis industry to operate in a risky environment heavy in cash. The legislation was initially introduced in the House in 2013 by Democratic Rep. Ed Perlmutter of Colorado, who has reintroduced the bill each subsequent congressional cycle.
The letter sent on Thursday, which was led by Democratic Governor Jared Polis of Colorado, notes that 37 states, four U.S. territories and the District of Columbia have passed recreational or medical cannabis legalization measures. But businesses in the regulated cannabis industry are still largely unable to access traditional banking