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U S House of Representatives approves cannabis banking bill

By Syndicated Content Apr 19, 2021 6:43 PM (Reuters) - The U.S. House of Representatives on Monday passed legislation that would allow banks to provide services to cannabis companies in states where it is legal, a step towards removing what analysts say is a barrier to development of a national industry. Lawmakers voted 321-101 to approve the bill and send it to the Senate. The bill clarifies that proceeds from legitimate cannabis businesses would not be considered illegal and directs federal regulators to craft rules for how they would supervise such banking activity. Banks have generally been unwilling to do business with companies that sell marijuana or related products, fearing they could run afoul of federal laws.

House passes cannabis banking bill

ADVERTISEMENT The SAFE Banking Act states that proceeds from legitimate cannabis businesses will not be considered illegal. It would direct federal regulators to craft rules for how they would supervise such banking activity. Banks and credit unions have largely avoided serving cannabis firms because of the gap between federal and state laws. Cannabis is illegal under federal law, but three-dozen states have legalized medical or recreational use of the drug. Financial firms that work with a cannabis company, however, risk steep federal penalties, even in states that have legalized the drug. The House-passed legislation has broad support in the banking industry, including from the American Bankers Association.

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