SAFE Banking Act; regulatory clarity and reassurance
Published by: Lianne Simeone
April 6, 2021 | Government Affairs
Navigating ambiguous and unclear cannabis banking compliance can hinder credit unions from fully serving members and meeting their unique needs. That is why the League teamed up with the Ohio Bankers League to support the efforts behind both U.S. Representatives Steve Stivers (R-Upper Arlington) and Warren Davidson (R-Troy) in their co-sponsorship of H.R. 1996, the Secure and Fair Enforcement (SAFE) Banking Act.
The SAFE Banking Act addresses the inherent challenges for financial service providers to serve cannabis-related businesses, resolving the current murky compliance requirements and state and federal law conflict. Since Ohio’s medical cannabis program launched in 2019, nearly 40,000 pounds of product has been sold, totaling over $338 million. Such an expansive movement of hard currency creates a public safety crisis for Ohio communities and complicates the ability for credit unions and banks to serve cash-flush marijuana-related businesses. H.R. 1996 takes the important first step toward allowing cannabis-related businesses to legally, and more readily, access financial services and the electronic banking system while providing a safe harbor for financial institutions.
The League continues working with both Congressmen Stivers and Davidson to ensure financial institutions, like credit unions, can serve members without adding complex compliance requirements. Read the joint letter and contact Chief Advocacy Officer Emily Leite for questions or more information on cannabis banking-related advocacy efforts.
T: (614) 923-9770
C: (614) 581-8460
Contact Emily Leite for questions or assistance.