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Senate Democrats to reportedly push banking reforms for cannabis industry

Democrats in the Senate will push to liberalize banking access to the cannabis industry during the lame duck session, it was reported on Saturday, in moves being watched closely by the Department of Justice which is concerned that reforms could ‘complicate’ the industry’s legal status.

A justice department memo, obtained earlier this week by Punchbowl News, outlines how implementation of a bill to reform the banking rules for cannabis companies “could significantly complicate law enforcement investigations and prosecutions”, though it also notes that the department believes that subject to minor changes “it can effectively implement the legislation”.

The legislation, titled the Secure and Fair Enforcement Banking Act, would provide a “safe harbor” for regulated banks to work with cannabis firms in states where it’s legal. While that would not legalize cannabis at a federal level, it would release the industry from a key limitation to its growth.

The passage of the bill through the Senate has become a priority for Senate majority leader Chuck Schumer ahead of the new session in January, Axios reported on Saturday.

In July, the New York democratic senator, along with Senators Cory Booker of New Jersey and Oregon’s Ron Wyden introduced the Cannabis Administration and Opportunity Act that would decriminalize cannabis at the federal level.

[Read more at The Guardian]
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