U.S. Cannabis Banking Reform Included In Latest House COVID-19 Relief Bill

Banking reform is desperately needed in the United States. Many cannabis companies have had their accounts shut down and many others were never able to get banking access to begin with due to current federal policy.

The banking issue in the U.S. has also affected other countries, with Jamaica specifically stating that banking policies in the U.S. have negatively impacted their ability to conduct international cannabis operations despite Jamaica’s cannabis policies.

Today news broke that banking reform was included in a measure that was introduced by the U.S. House of Representatives. Below is a press release about it from our friends at the National Cannabis Industry Association:

WASHINGTON, D.C. – On Tuesday, Speaker of the House Nancy Pelosi unveiled the newest bill to provide the next stage of coronavirus relief funding and included language that would improve access to banking services and loans for the regulated cannabis industry. The banking language is identical to the House-approved Secure and Fair Enforcement (SAFE) Banking Act and would make it easier for financial institutions to work with cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. The relief bill, known as the HEROES Act, also includes language preventing applicants for Small Business Administration loans from being disqualified based solely on a criminal conviction.

The full relief legislation is available here, with banking language starting on page 1066.

The HEROES Act will now be taken up by the rest of the House before a floor vote. If passed, it will go to the Senate for consideration.

“On behalf of the legal cannabis industry, we commend the congressional leadership for prioritizing public health and safety by including sensible cannabis banking policy in this legislation,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “Our industry employs hundreds of thousands of Americans and has been deemed ‘essential’ in most states. It’s critically important that essential cannabis workers are not exposed to unnecessary health risks due to outdated federal banking regulations.”

Last week, NCIA joined other cannabis advocacy and industry organizations in urging Congress to include the SAFE Banking Act in the next round of relief funding, citing the ability of cash to carry contagions and the personal proximity required by cash transactions as reasons for urgency in addition to the other safety and transparency concerns addressed by the legislation.

In September, an overwhelming bipartisan majority approved the SAFE Banking Act in the House, but the bill has been delayed pending a markup in the Senate Banking Committee.

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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization broadly representing cannabis-related businesses at the national level. NCIA promotes the growth of a responsible and legitimate cannabis industry and works toward a favorable social, economic, and legal environment for that industry in the United States.