State AGs Implore Congress to Give Banks Green Light to Work With Cannabis Industry
With 280E, banks are reluctant to do business with cannabis companies
Financial institutions may be a step closer to serving the cannabis industry, which is expected to generate $34 billion in retail sales this year.
Late last month, a bipartisan group of 32 attorneys general pressed Congress to pass SAFER—the Secure and Fair Enforcement Regulation Banking Act, which would provide a safe harbor for depository institutions serving cannabis businesses in a state where it is legal to operate them.
And on Monday, President Donald Trump said he is considering reclassifying marijuana as a less dangerous drug.
Currently, banks are reluctant to do business with cannabis companies because the drug is illegal at the federal level. Such a mismatch between state and federal law has forced many cannabis businesses to conduct business on a cash-only basis.
SAFER “will increase access to regulated banking and financial services for state-regulated cannabis businesses in jurisdictions that have legalized these businesses,” said the letter that included signatures of attorneys general of Georgia, Maryland, Ohio and the District of Columbia.
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