The national government is catching up with the states.
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New Jersey will likely be the next to legalize recreational marijuana, which would make it the 11th state (plus the District of Columbia) to do so. Medical marijuana is legal in an additional 22 states, meaning that more than half the country permits some form of the drug.
And yet, most growers and sellers can’t get a bank account for their business.
Because the drug is still illegal under federal law, any bank that handles marijuana money can be charged with money laundering. This forces the industry to deal with large amounts of cash, making the businesses targets for violent crime and making it difficult for states to track and collect the tax revenue they're owed.
But, there appears to be more momentum than ever before for addressing this issue.
This month, the SAFE Banking Act was introduced in Congress. It would prevent federal banking regulators from punishing banks for working with legal cannabis businesses.
This is the second time a bill like this has surfaced, but this year, there are 138 bipartisan cosponsors in the House. That’s a notable improvement from 2017 when there were only 95 cosponsors. The SAFE Banking Act is scheduled for committee markup this week, meaning it’s already made it farther in the legislative process than the previous version.
Advocates of the bill, including state treasurers, are optimistic.
“I definitely think it has more momentum this time,” says Illinois State Treasurer Michael Frerichs, who leads the National Association of State Treasurers' bipartisan group supporting the act. “We understand there will always be some opposition to marijuana. ... But we think attitudes are changing.”
Still, even if it passes the Democratic-controlled House, it’s unclear how much traction the legislation would have in the Republican-controlled Senate.
In the meantime, states are seeking out their own solutions.
