• June 19, 2024

U.S. House Passes Cannabis Banking Bill

 U.S. House Passes Cannabis Banking Bill
Photo: Feelgoodsk | Dreamstime.com

The U.S. House of Representatives on April 19 passed legislation that would allow banks to serve cannabis companies in states where it is legal, reports Reuters.

The bill clarifies that proceeds from legitimate cannabis businesses would not be considered illegal and directs federal regulators to craft rules for how they would supervise such banking activity.

Banks have generally been unwilling to do business with companies that sell marijuana or related products, fearing they could run afoul of federal laws.

That has left companies in the marijuana industry with few options, including relying on just a handful of small financial institutions or doing business in cash.

Thirty-six states have legalized medical cannabis while 17 states now allow adult use, according to the National Conference of State Legislatures.

Lawmakers voted 321-101 to approve the bill and send it to the Senate.