Treasury Secretary Steven Mnuchin identified the conflict in state and federal marijuana law as a significant issue for the Treasury Department and other financial regulators. Speaking before the House Appropriations Committee this week, Secretary Mnuchin urged Congress to find a bipartisan solution to the cannabis banking prohibition caused by the contradictory state and federal policies on marijuana legalization.
Secretary Mnuchin did not endorse a specific proposal in Congress, but he acknowledged “there are people on both sides of the aisle that share these concerns” related to financial services for marijuana related businesses.
Attorney General William Barr also offered tentative support this week for legislation that would enact a federal marijuana framework that permits state governments to establish their standard of marijuana legalization. Attorney General Barr indicated he would prefer an approach more similar to the STATES Act, than the current federal prohibition on marijuana. The STATES Act is a recently introduced legislative proposal that would grant state authorities autonomy over marijuana policy.
A number of weeks ago, the House Financial Services Committee passed legislation, which RCRC fully supports, to liberalize the federal banking laws for the cannabis industry in/for states which have sanctioned a legal, regulated market. That legislation, commonly known as the SAFE Act, is likely to secure passage on the House Floor in the coming weeks.