Marijuana Banking Reform: Millions seek banking services through Defense Law

By David E. Carpenter

To get marijuana banking reform passed as part of this year’s National Defense Authorization Act (NDAA), vocal members of labor and finance organizations wrote a letter to the Senate leadership begging them to get legitimate cannabis companies providing banking services that also give them access to essential insurance products and protections that are granted to other industries.

Marijuana Moment recently reported that the letter includes contributions from the American Bankers Association (ABA), Credit Union National Association (CUNA), United Food and Commercial Workers Union (UFCW), and 11 other organizations, asking members to use the language To take over protection of the banks that work with state-legal cannabis companies.

Photo by Kindel Media from Pexels

The support from the members of these organizations is enormous and far-reaching. CUNA alone has over 120 million members.

The Secure and Fair Enforcement (SAFE) Banking Act, which aims to protect financial institutions that provide banking services to legitimate cannabis companies and service providers for such companies, was approved five times in the House of Representatives, but on every occasion it fizzled out in the Senate.

Of course, many large financial institutions are reluctant to start cannabis deals because the plant is federally designated as a List 1 controlled substance alongside heroin and LSD. That makes it a risky business for some commercial interests.

The latest letter from powerful working and financial groups affected by the law was written to express the dissatisfaction of leaders of the organizations who believe the upcoming marijuana banking reform is through the NDAA’s final processes, this or passed next month, could be at risk again.

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“Our organizations have come together because the status quo is untenable for workers, communities, ancillary businesses and law-abiding financial institutions … SAFE Banking is important to the NDAA because it strengthens national security by keeping bad actors out of the cannabis industry and financial system.” . “While supporting thousands of veterans who depend on the cannabis industry for medical treatment, employment or business opportunities,” the letter reads.

RELATED: How Cannabis Banking Laws Develop In The Senate Will Determine The Future Of National Marijuana Reform

In addition to the millions of members of the groups who contributed to the letter, federal agencies have a legitimate interest in giving marijuana companies access to banking for no other reason than better tracking their revenues and taxing more effectively to collect from them.

This article originally appeared on Benzinga and was republished with permission.