Yellen endorses marijuana banking bill

Treasury Secretary Janet Yellen endorsed legislation last week that would provide financial institutions with a regulatory safe harbor if they serve marijuana-related businesses in states where cannabis is legal.

Yellen told the House Appropriations Financial Services Subcommittee that since marijuana is outlawed by the federal government, credit unions and banks are reluctant to provide financial services to cannabis-related businesses.

“I think legislation may be necessary to raise the comfort level,” she said. “We potentially would welcome legislation in this area that would clarify for banks what their responsibilities are.”

Since marijuana is illegal on the federal level, credit unions and banks can open themselves up to sanctions from federal regulators if they do business with cannabis-related firms. Supporters of marijuana banking legislation, including America’s Credit Unions and banking trade groups, have said that as a result of those concerns, cannabis-related businesses often are forced to conduct all transactions in cash. That makes the businesses vulnerable to robberies.

 

continue reading »