The attorneys general of 33 states and five U.S. territories said Wednesday they support congressional legislation that would allow cannabis companies in Colorado and elsewhere to use banks without fear of federal repercussions.
As a result, the National Association of Attorneys General has adopted support of U.S. Rep. Ed Perlmutter’s bill as its official policy, lending law enforcement backing to the legislation.
“For too long, the status quo has pushed legitimate businesses outside the banking system and into cash-dependent models, creating a lucrative target for violent and white-collar crime,” said Colorado Attorney General Phil Weiser, who corralled the support among his fellow attorneys general.
Eight of the supporters are Republicans, hailing from states as conservative as Oklahoma, Utah and Arkansas. Perlmutter, an Arvada Democrat, has sought out Republican support in recent years as he has attempted, and so far failed, to pass his SAFE Banking Act.
Because marijuana remains illegal under federal law, financial institutions risk criminal prosecution if they hold the profits of marijuana sales. That forces cannabis companies to operate primarily with cash.
“The resulting grey market,” the attorneys general wrote to congressional leaders Wednesday, “makes it more difficult to track revenues for taxation and regulatory compliance purposes, contributes to a public safety threat as cash-intensive businesses are often targets for criminal activity, and prevents proper tracking of billions in finances across the nation.”
Anti-marijuana groups oppose Perlmutter’s bill because banking bolsters the cannabis industry. Kevin Sabet, a former drug policy adviser to President Barack Obama, has said it “would open the floodgates on Wall Street investment.”
The Permutter legislation, HR 1595, was introduced in early March and easily passed the House Financial Services Committee on March 28. Perlmutter expects it will go before the House Rules Committee this month, and then on to the full House. He’s a Rules Committee member.
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