Senator Majority Leader Chuck Schumer (D.NY) reiterates his commitment to tackle marijuana banking reform in the coming year. The head of the U.S. Treasury Department said that regulators are also looking into possible solutions.
During a hearing before Senate Finance Committee on Thursday Senator Michael Bennet (D-CO), pressed Treasury Secretary Janet Yellen over the fact that cannabis industry has no access to traditional financial services because of prohibition.
Senator argued that marijuana is more stable than cryptocurrency as a commodity, but banking regulations allow for large investments in the former which ultimately led to the collapse at least one bank.
Yellen responded by saying, “As you pointed out in the marijuana case, it is against federal laws and that’s a obstacle, unfortunately, to appropriating banking services for this industry.”
She stated that “it’s something regulators have been searching for solutions to.”
The bipartisan legislative representatives are also seeking to solve the cannabis banking problem. In fact, the House has repeatedly passed legislation protecting financial institutions that deal with marijuana businesses.
The reform was part a package of marijuana measures that Senator Majority Leader Chuck Schumer (D–NY) tried to get enacted last session but he claimed that the GOP opposition hampered the process.
In a new interview, he said that even though Congress is divided, he plans to continue pushing for modest reforms with Sen. Steve Daines, R-MT.
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Although it is not yet clear what Treasury regulators will be able do in the interim period, some believe that clearer federal guidance could help to mitigate the problem.
Although the Financial Crimes Enforcement Network, (FinCEN), Treasury has Obama-era guidance for banks on how to navigate state-federal cannabis conflict. However, many banks remain reluctant to accept marijuana clients because of possible federal penalties.
Yellen and lawmakers have discussed marijuana issues on numerous occasions. They both agree that the status quo is unacceptable.
She stated last year that Congress had failed to pass legislation such as the Secure and Fair Enforcement Bank Act and that Treasury was “supportive” of the proposal.
She stated that we had discussed it for a very lengthy and she agreed with you: It is an important issue–and an extremely frustrating one–that we haven’t been able resolve.”
Following last year’s election Sen. Cory Booker (D.NJ) stated that it could take “many years” for cannabis legislation to be passed if Democrats don’t get the job done during lame duck.
In December, Rep. Patrick McHenry (R.NC), chair of the House Financial Services Committee stated that although he opposes the bank proposal, he would not stand in its path.
In January , the White House was asked where President Joe Biden stood on marijuana banking reform. Press Secretary Karine Jean Pierre stated that Congress is the final authority and there are no plans to take administrative action.
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The post Treasury secretary Says Regulators are ‘Looking for Solutions’ to Marijuana Bank Problem as Schumer Recommits to Addressing The Issue originally appeared on Marijuana moment.
