State AGs want Congress to let banks work with cannabis industry

Attorneys basic in 19 states and U.S. territories say Congress should act to finish the banking industry’s prohibition on serving the marijuana industry, calling the present state of affairs a public security menace and a hindrance for regulation enforcement.

In a letter to leaders of the House and Senate, the attorneys basic urged Congress to move laws that would offer authorized safety for banks that settle for deposits from state-licensed cannabis companies.

Most banks, even in states the place the drug is authorized, gained’t supply accounts to marijuana-related companies for worry of operating afoul of federal officers. That leaves the fast-growing marijuana industry largely reliant on money.

This “gray market,” state officers argue, makes it harder for states to make sure that companies are paying their taxes, and “contributes to a public safety threat as cash-intensive businesses are often targets for criminal activity.”

Giving banks the go-ahead to work with cannabis corporations “would bring billions of dollars into the banking sector, and give law enforcement the ability to monitor these transactions,” the letter says.

The letter got here a few week after U.S. Attorney General Jeff Sessions revoked a few of the company’s Obama administration steerage relating to cannabis regulation enforcement, an motion that some recommend could lead on to a federal crackdown.

“The recent rescission of that guidance has made the need for congressional action to get the cash generated by this industry into a regulated banking sector even more urgent,” they wrote.


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