Janet Yellen Would Welcome Cannabis Banking Reform Legislation, Says It 'May Be Necessary'

U.S. Treasury Secretary Janet Yellen said on Thursday that she would welcome legislation that would rectify the conflict between federal and state laws on the sale and use of cannabis, which is preventing cannabis companies from accessing the banking system.

Rep. Dave Joyce (R-OH), co-chair of the Congressional Cannabis Caucus, asked the Treasury Secretary at a House Appropriations subcommittee hearing about the years-long banking issues facing legal cannabis companies. "Can you tell me what is presently this administration's position on" the Secure and Fair Enforcement Regulation (SAFER) Banking Act?

“I think we would potentially welcome legislation in this area that would clarify for banks what their responsibilities are,” Yellen replied, reported Reuters. “The fact that marijuana is outlawed by the federal government creates an impediment to (banks’) willingness to provide banking services, services to cannabis firms, and it creates all the problems that you’re familiar with.”

Rep. Joyce attended the Benzinga Cannabis Capital Conference in Miami in 2023. Other essential politicians such as Rep. Ed Perlmutter and Sen. Cory Gardner will be with Benzinga for this year’s event, April 16-17, 2024.

Yellen did not specify which provisions she viewed as crucial for such legislation nor did she comment on the September 2023 milestone approval of the Secure and Fair Enforcement Regulation (SAFER) Banking Act by the U.S. Senate Banking Committee. The bill is meant to enable legal cannabis businesses access to banks and financial institutions, which up to now have been off limits as banks are not only prohibited by federal law from dealing with cannabis in that it is a Schedule I drug, but they're also concerned about accusations of money laundering. These restrictions have forced the cannabis industry to deal on a cash-only basis, resulting in dangerous, even deadly armed robberies.

“I think legislation may be necessary to raise the comfort level that banks have in doing this business,” Yellen said.

Democratic Rep. Steny Hoyer from Maryland offered to help Yellen and Republican colleagues in passing such legislation because the current situation is putting businesses and employees at risk.

"We're putting people in a very vulnerable position where they have large amounts of cash. We're encouraging criminals to break into businesses that deal in cannabis," Hoyer said. "I am neither a user nor suggester of using, but the fact of the matter is every state that's voted on it has made it legal, and I appreciate your work and whatever I can do to help you on there."

Join these important conversations and more at the Benzinga Cannabis Capital Conference in Florida at the new venue in Hollywood on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn, and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars — this conference is the go-to event of the year for the cannabis world. Get your tickets now on bzcannabis.com – Prices will increase very soon!

Photo:  International Monetary Fund via Flickr