Group Representing State Treasurers Formally Calls On Congress To Pass Banking Legislation

Marijuana Moment reports

The National Association of State Treasurers adopted a resolution on Friday announcing that the organization “supports common sense federal laws and regulations to provide essential banking services to state legalized cannabis businesses, promote public safety and financial transparency, and facilitate local, state and federal tax and fee collection.”

The measure, which makes clear that the group “takes no position as to whether cannabis should be legalized under the laws of the United States or of any state,” highlights the public safety issues caused by current federal policy, which makes many financial services providers reluctant to work with the marijuana industry.

“Lacking banking services, many legal cannabis businesses operate solely in cash,” it says. “Cash-based systems are inefficient, expensive, and opaque, making illicit activity more difficult to track and posing a significant risk to public safety by increasing the likelihood of violent crime.”

The status quo also causes headaches for regulators, the group argues.

“Whereas, unbanked cannabis businesses are unable to write checks, make and receive electronic payments, utilize payroll providers, accept debit or credit cards, or pay taxes through a financial institution, tax collection is more difficult and burdensome for both businesses and governments, and the potential for tax fraud is substantially increased,” the resolution states.

The group’s endorsement, which was led by Oregon State Treasurer Tobias Read and Utah Treasurer Damschen, follows a letter on the issue that 17 state treasurers signed earlier this month.

“This was an ongoing, thoughtful conversation the Association has been having for the last two years,” Read told Marijuana Moment. “The majority of states have legalized medical or recreational cannabis, and need to have safe banking options for these businesses. I hope that Congress will recognize that this public safety issue is bi-partisan and will create safer communities.”

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State Treasurers Group Endorses Marijuana Banking Legislation

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Author: Sean Hocking
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