Biden's Treasury Secretary Sympathetic To Cannabis Industry's Banking Woes, Calls Congressional Inaction 'Frustrating'

Treasury Secretary Janet Yellin called it “extremely frustrating” that Congress has not yet enacted cannabis banking reform legislation and that her department is “supportive” of the bipartisan Secure and Fair Enforcement (SAFE) Banking Act, reported Marijuana Moment. 

Rep. Ed Perlmutter (D-CO), the banking bill’s sponsor, raised the issue with Yellen during a hearing of the House Financial Services Committee, stressing a rise in violent crime targeting legal cannabis businesses whose lack of banking options forces them to operate on a cash-only basis. Perlmutter asked the Treasure Secretary what she thought about the situation.

“We have talked about it for a very long time, and I agree with you: It’s an important issue—and it’s an extremely frustrating one that we haven’t been able to resolve,” Yellin said at the Wednesday hearing, adding that she appreciates Perlmutter’s leadership on the topic. “We’ve worked with you on this bill,” the secretary said."We’re supportive of it.”

Banks: Trapped Between State And National Law

“As you know, there is a conflict between state and national law. Banks trapped in the middle of that. And some legislative solution, I think, is necessary to move this forward,” Yellen said. “I share your frustration that we haven’t been able to make progress. I think it does really require congressional action.”

The SAFE Banking Act, which has passed the House six times in some form, would allow cannabis companies to obtain much-needed banking services.

The bill would “improve transparency and accountability, and help law enforcement root out illegal transactions to prevent tax evasion, money laundering, and other white-collar crime… reduce the risk of violent crime in our communities.” Perlmutter has said about the banking legislation, consistently stressing the public safety issue. 

Perlmutter asked Yellen to “impress upon the administration the need” to pass the SAFE Banking legislation either as part of the America COMPETES Act— the manufacturing and innovation legislation – or as a standalone bill “so that nobody else dies because there’s so much cash” in the state markets.

“We would like to see that happen,” Yellen replied.

Photo by Sharon McCutcheon on Unsplash