Attorneys general in 19 states and U.S. territories say Congress must act to end the banking industry’s prohibition on serving the marijuana industry, calling the current state of affairs a public safety threat and a hindrance for law enforcement.
In a letter to leaders of the House and Senate, the attorneys general urged Congress to pass legislation that would provide legal protection for banks that accept deposits from state-licensed cannabis businesses.
Most banks, even in states where the drug is legal, won’t offer accounts to marijuana-related businesses for fear of running afoul of federal officials. That leaves the fast-growing marijuana industry largely reliant on cash.
This “gray market,” state officials argue, makes it more difficult for states to ensure that businesses are paying their taxes, and “contributes to a public safety threat as cash-intensive businesses are often targets for criminal activity.”