Two major credit union associations have written to the United States Senate Banking Committee, urging them to hold hearings to discuss a solution to the cannabis banking issue that legal states currently face.
The American Association of Credit Union Leagues (AACUL) and the Credit Union National Association (CUNA) wrote a joint letter to Chairman Mike Crapo and Ranking Member Sherrod Brown on Wednesday asking the Senate Banking, Housing, and Urban Affairs Committee to conduct hearings to discuss “safe banking options for businesses operating in the legal cannabis industry.”
In 2019, the District of Columbia and 34 states have medical cannabis programs, ten have adult-use laws, but none have access to the banking system, despite a rapidly growing industry.
Illinois is poised to become the 11th state to legalize cannabis once Governor Pritzker adds his signature to HB1438 which passed the state legislature last week.
“The lack of legal and regulatory guidance on banking for legitimate cannabis business has created a dangerous and costly environment for all involved since they now must operate on an almost all-cash basis,” states the letter. “Not only do the employees have to transact with and transmit large amounts of cash daily, often tens of thousands of dollars at a time, but the states must also collect taxes and licensing fees in cash, which increases compliance and administrative costs for the state and the business.”
CUNA and AACUL state that they remain neutral on the topic of cannabis legalization but are in support of the Secure and Fair Enforcement (SAFE) Banking Act of 2019, the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, or any other measure that would cannabis solve banking issues.
The letter says that there is no legitimate reason for Congress to postpone the discussion of banking issues or delay taking action to resolve them.
