On September 25, the US House of Representatives passed the Safe and Fair Banking Regulation Act. The regulation provides legal protection to financial institutions that collaborate with the cannabis industry.
The law aims to increase public safety
321 members of the House voted for the initiative, 103 parliamentarians opposed it. The representative of the Republican Party, Ed Perlmutter commented on the decision of lawmakers: “The Americans talked and are talking about the need to amend the current rules. The fact is that we can not put the genie back in the bottle. The ban is time to withdraw. This regulation is designed to remove cash from circulation hemp enterprises, which will increase public safety. ”
Despite the fact that hemp is banned at the federal level, 33 states have legalized medical or recreational cannabis, and products with CBD and low THC content are allowed in 14 regions. Thus, only three states lack a legal framework governing cannabinoid trafficking in the legal market. With the easing of restrictions in the United States, there is a rapid development of the cannabis industry. Now the annual turnover of hemp enterprises is estimated at 52 billion dollars, while the business does not have access to banking services.
Financial institutions refuse to cooperate with the cannabis industry in order to avoid violating the law on combating money laundering. Therefore, hemp enterprises have to work with cash. The costs of This increase poses a threat to the safety of employees and problems with logistics.
Banks protect against federal sanctions
The regulation prohibits federal institutions from punishing credit and banking organizations that do not violate state law when providing services to help companies. Enterprises operating in the cannabis industry have gained the right to carry out any legal transactions in the region. The removal of restrictions was lobbied by Democrats and large financial organizations, for example, the Association of American Bankers, the Community of Independent Bankers of America and the National Association of Credit Unions.
Liberal lawmakers and supporters of criminal justice reform have called on the authorities to take measures to reduce the imbalance between federal and regional laws. In particular, they propose to mitigate the punishment for crimes related to hemp trafficking. House Finance Representative Maxine Waters is confident Congress has long had to pay attention to the unfair criminalization of cannabis use. In her opinion, the banking services document is an important element in a series of regulations that reform hemp legislation.