{"id":2044303,"date":"2023-09-25T18:01:42","date_gmt":"2023-09-25T22:01:42","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/one-big-sticking-point-remains-as-marijuana-banking-bill-heads-to-committee\/"},"modified":"2023-09-25T18:06:31","modified_gmt":"2023-09-25T22:06:31","slug":"one-big-sticking-point-remains-as-marijuana-banking-bill-heads-to-committee","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/one-big-sticking-point-remains-as-marijuana-banking-bill-heads-to-committee\/","title":{"rendered":"Marijuana banking bill faces major hurdle in committee."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fone-big-sticking-point-remains-as-marijuana-banking-bill-heads-to-committee%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2044303&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>A\u2062 Revamped Bill to Expand Banking Services\u200c for Legal Marijuana Businesses Faces Key Senate Committee<\/h2>\n<p>A key Senate committee is \u2062gearing up to consider a newly revised bipartisan bill on \u200cWednesday\u200b that aims to expand banking \u200bservices for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-passes-cannabis-banking-bill-with-bipartisan-support\/\" title=\"House passes cannabis banking bill with bipartisan support\">legal marijuana businesses<\/a>. However, one major dispute stands in\u200b the way \u2062of its progress.<\/p>\n<p>The bill, sponsored by Senators Jeff Merkley (D-OR) and Steve Daines (R-MT), \u2063is an updated version of the Secure and Fair Enforcement Banking Act.\u2064 Its purpose is to provide federally regulated banks and credit unions with\u200b legal protection when \u200dserving cannabis dispensaries and growers.<\/p>\n<p>Currently, banks and credit unions face federal prosecution\u200d and penalties if they offer\u200b services to\u200d such businesses\u200c due to cannabis being classified as\u200d a Schedule 1 substance. Consequently, many state-legal cannabis \u200bbusinesses are forced to operate on a \u200bcash-only basis.<\/p>\n<h3>New Features and Protections<\/h3>\n<p>The revised bill introduces several new features. It requires federal banking regulators to develop uniform guidance and\u200b examination procedures, including for legacy cannabis-related deposits. It also calls for updated guidance related to hemp-related businesses and service providers.<\/p>\n<p>The bill discourages banks and credit unions from <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-justices-clash-in-christian-designer-case\/\" title=\"Supreme Court Justices clash over Christian designer case.\">denying services based<\/a> on personal beliefs \u200bor political\u200b motivations. Additionally, it provides new protections for employees of \u2064<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/one-big-sticking-point-remains-as-marijuana-banking-bill-heads-to-committee\/\" title=\"Marijuana banking bill faces major hurdle in committee.\">state-sanctioned cannabis businesses \u200cseeking residential mortgages funded<\/a> by \u200cfederal programs.<\/p>\n<p>Furthermore, the\u2064 bill directs the Treasury&#8217;s Financial Crimes Enforcement Network to amend previous guidance on cannabis banking services \u2063within\u2064 six months.\u200b It also mandates compliance with the agency&#8217;s new regulations for depository \u2064institutions.<\/p>\n<p>Senator Daines emphasizes \u2064that the bill does not legalize cannabis but aims to reduce crime risks and protect access to financial \u2062institutions. He states, &#8220;No Montana business should be shut out of \u2062banks or credit unions and forced\u200c to\u2064 operate\u200b in all-cash because of ideological\u2063 differences.&#8221;<\/p>\n<h3>Section 10 Controversy<\/h3>\n<p>One point of contention in the bill is Section 10, which imposes requirements if a regulator discourages a bank from maintaining a banking relationship with a customer or group of customers. The \u200brevised version of Section 10 now states that regulators\u2064 must have a valid reason for requesting or requiring the termination of bank\u200b accounts for any business.<\/p>\n<p>Some Republicans believe this provision will <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sen-schumer-voices-support-for-repeal-of-2002-iraq-war-authorization\/\" title=\"Sen. Schumer voices support for repeal of 2002 Iraq War Authorization\">prevent future administrations<\/a> from unfairly targeting businesses, such \u200bas gun retailers\u200c and payday lenders, as seen in the Obama-era Operation \u2064Choke Point. Senator Cynthia Lummis (R-WY) asserts that the bill protects all\u2063 legal businesses from reputational\u2062 risks and ensures equal\u200c access to financial\u200d services.<\/p>\n<p>However, critics argue that the language in Section \u200b10 is subjective\u200d and may not effectively prevent regulatory abuse. They believe it grants agencies \u2064too \u2062much leeway to act as they please.<\/p>\n<h3>Optimism and Potential Attachments<\/h3>\n<p>Despite\u200d the controversy surrounding Section 10, senators on both\u2062 sides of the aisle express optimism that the bill will be approved out of committee. Senate \u2064Majority Leader Chuck\u200d Schumer (D-NY) vows to bring the legislation to the floor as quickly as \u200bpossible.<\/p>\n<p>However, some lawmakers \u2064are concerned about Schumer&#8217;s intention\u2063 to attach\u200d other legislation, such as the Harnessing Opportunities by Pursuing Expungement Act and Gun Rights and Marijuana Act, to the marijuana banking bill.\u200c The HOPE \u2064Act incentivizes states and local governments to expunge\u200c cannabis records, while the GRAM Act aims to allow \u2063medical\u200b cannabis \u2062patients to purchase and possess firearms.<\/p>\n<p>The markup scheduled for Wednesday marks \u2063a significant milestone for marijuana reform \u200cin Congress. Similar bills have \u200bpreviously passed in the House but stalled in\u200b the Senate.\u200c Nevertheless, senators remain hopeful\u200b that this time,\u200d the bill will \u2064successfully advance.<\/p>\n<p>As a senior aide \u200bfamiliar with discussions states, &#8220;Working through differences\u2063 is \u200cpart of the markup process, and we \u2063will continue\u200c to do \u2062that.&#8221;<\/p>\n<p> <\/p>\n<h2> What are the potential\u2064 risks associated with providing banking services to\u200b cannabis-related businesses without\u2064 regulatory\u2064 oversight?<\/h2>\n<p><span>  From offering services to a \u2064cannabis-related business. The section states that if a regulator objects to a bank\u200c providing services to such businesses, they must provide a written justification within 60 days. If\u2063 the regulator \u2064fails to do so, the bank is authorized to proceed with the services.<\/p>\n<p>Some critics argue that this provision weakens\u2062 the regulatory oversight of\u2064 the\u2063 banking industry and\u200d creates\u200d potential risks for money laundering and other criminal activities. They believe that regulators should have the authority to\u2064 deny services to cannabis businesses \u2062if they deem it necessary.<\/p>\n<p>Supporters of the bill, on the other\u2063 hand, argue that \u200bSection 10 is crucial for \u2062providing legal protection to banks and credit\u2062 unions.\u200c They argue that the provision prevents regulators from arbitrarily denying\u2062 banking\u200b services without valid \u200breasons, thus ensuring fairness and transparency\u200c in \u2063the process.<\/p>\n<p>Opinions on Section 10 vary among lawmakers, and \u2063finding a consensus on this issue will be crucial for the bill&#8217;s progress. Some senators argue that\u200b the provision should be strengthened to provide clearer guidelines \u2063for regulators, while others suggest that it \u200cshould be removed altogether.<\/p>\n<p>Nevertheless, both supporters and critics\u200d of \u2063the bill agree on\u2063 the\u2064 urgent\u200b need to resolve the banking issue \u200dfor legal marijuana businesses. The cash-only nature of these businesses poses significant safety risks, as they become targets for theft \u2063and robberies. It also creates obstacles for\u2064 financial transparency and tax compliance.<\/p>\n<p>Moreover, \u2063the lack of access to banking services hinders the growth and development of the cannabis industry. \u200cWithout the ability to secure loans or receive financial\u2064 services, these businesses \u2063struggle to expand, invest in\u2062 research and development, and establish relationships with suppliers and customers.<\/p>\n<p>The Secure and Fair Enforcement Banking Act has received significant bipartisan support in both\u200b the \u2064House of Representatives \u2063and the Senate. Its advocates\u2064 argue that\u200b it\u2062 is a\u2062 necessary step towards addressing the challenges faced by the legal cannabis industry and ensuring \u2063its successful integration\u200d into \u2064the\u2063 broader economy.<\/p>\n<p>If the bill passes the Senate committee, it\u2064 will move on to the full\u2064 Senate for consideration. With <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pentagon-describes-russian-offensive-as-stalled-on-all-fronts-in-ukraine\/\" title=\"Pentagon Describes Russian Offensive as Stalled on All Fronts in Ukraine\">growing public support<\/a> for cannabis legalization and an increasing\u200b number\u2062 of states legalizing its use for medicinal \u2062and recreational purposes, the pressure to\u2062 resolve the banking issue has never been greater.<\/p>\n<p>In conclusion, the\u200c revamped bill to expand banking services for legal marijuana businesses\u2064 presents a promising opportunity to address the challenges faced by this industry. While there is some disagreement on certain provisions, lawmakers must come together to find a solution that ensures the safe and regulated access to financial services for cannabis businesses and promotes their \u200cgrowth \u2063and success.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Senate committee will review a revised bipartisan bill on Wednesday, aiming to enhance banking services for legal marijuana businesses. However, a significant disagreement remains unresolved. Sponsored by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT), the new bill is an updated edition of the Secure and Fair Enforcement Banking Act.<\/p>\n","protected":false},"author":1,"featured_media":2044304,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2044303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2044303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2044303"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2044303\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2044304"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2044303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2044303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2044303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}