Ongoing federal marijuana prohibition has created a “real problem” for banks amid the growing state legalization movement, a top Biden administration official says, adding that it would be “desirable” for Congress to pass reform legislation to address the issue.
At a House Appropriations Financial Services And General Government Subcommittee hearing on Thursday, Rep. Dave Joyce (R-OH) asked Treasury Secretary Janet Yellen to weigh in on regulatory complications resulting from the “conflict” between federal and state marijuana policies.
“Can you tell me what is presently this administration’s position on” the Secure and Fair Enforcement Regulation (SAFER) Banking Act, Joyce, co-chair of the Congressional Cannabis Caucus, asked.
Yellen began by saying that her department would “potentially welcome legislation in this area that would clarify for banks what their responsibilities are” with respect to the cannabis industry.
She added that “the fact that marijuana is outlawed by the federal government creates an impediment to [banks’] willingness to provide banking services to cannabis firms, and it creates all the problems that you’re familiar with.”
“I think legislation may be necessary to raise the comfort level that banks have with doing this business.”
Rep. Steny Hoyer (D-MD) also told the secretary that
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