House GOP Divided Over Cannabis, Strikes Banking Protections From Bill: 'Respect The Will Of These States'

House Republicans have removed a provision from an essential government funding bill that would have protected banks serving legal cannabis businesses from federal penalties.

This decision marks a setback for the legal marijuana industry, highlighting ongoing tensions within Congress over cannabis regulation.

Controversial Provision Removed

The provision, part of the GOP’s annual financial services and general government bill, aimed to prevent the use of funds to penalize financial institutions solely for providing services to legal hemp and marijuana businesses. As reported by The Hill, this decision follows significant resistance within the Republican Party.

Rep. David Joyce, a Republican from Ohio, upcoming speaker at the Benzinga Cannabis Capital Conference, and chair of the subcommittee responsible for drafting the bill, noted the internal opposition.

"With over 40 states enacting some degree of cannabis reform, it is past time that the federal government respects the will of these states," Joyce said. "My Financial Services and General Government bill included provisions to do just that and ensure states’ rights to make the best choices for their unique constituencies are protected."

Joyce’s original bill included measures to safeguard states’ rights to regulate cannabis independently. However, Rep. Chuck Edwards of North Carolina — a fellow Republican — opposed the banking protection language, arguing that it implicitly endorsed cannabis use. He emphasized that despite state-level legalization, marijuana remains federally illegal and classified as a Schedule I drug.

Legislative Divisions

The debate underscores the ongoing division within Congress, particularly among Republicans, over marijuana legalization. Despite growing support for cannabis banking reforms, driven by the increasing number of states legalizing recreational marijuana, opposition remains strong.

Joyce and other legislators have backed the Secure and Fair Enforcement Banking Act (SAFE) of 2023 to improve banking access for legal cannabis businesses. "While the provisions maintain strong bipartisan support, as Chairman, I will work to alleviate their concerns but will not delay my responsibility to fund the government and, therefore, my legislation in the meantime," Joyce stated.

Looking Ahead

The debate over cannabis banking protections is expected to be a prominent topic at the upcoming Benzinga Cannabis Capital Conference, which will be held October 8-9 in Chicago. David Joyce will address the current challenges and future prospects of cannabis banking and regulation.

As the legal marijuana industry continues to face regulatory challenges, the event offers a crucial platform for industry leaders to share ideas, discuss solutions, and collaborate on shaping the future of cannabis policy and business practices.

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