CCUL joins CUNA, state leagues in seeking reg guidance on banking for lawful cannabis businesses
Thursday, June 6, 2019
The American Association of Credit Union Leagues (AACUL) this week joined CUNA in the shared desire for the Senate Banking, Housing, and Urban Affairs Committee to conduct hearings to discuss safe banking options for businesses operating in the legal cannabis industry.
AACUL is comprised of state credit union associations/leagues, including the Carolinas Credit Union League who signed in support of clearer guidance. The letter lays out the need for legislative and regulatory frameworks to keep pace with the success of legal cannabis-related businesses.
“Currently, thirty-four states and the District of Columbia have medical cannabis programs, and ten states have recreational cannabis programs,” the letter states. “The businesses that serve these jurisdictions are thriving and are expected to continue to grow at a fast pace.”
As supporters of the letter explain, the lack of legal and regulatory guidance on this matter has given way to a “dangerous and costly environment.”
“Not only do the employees have to transact with and transmit large amounts of cash daily, often tens of thousands of dollars at a time, but the states must also collect taxes and licensing fees in cash, which increases compliance and administrative costs for the state and the business.”
Encouraging the Senate to move forward with hearings that may remedy this banking issue, AACUL reiterated its support for S. 1200 - Secure and Fair Enforcement Banking Act of 2019 (SAFE Act), and the banking-related provisions in S.1028 - The Strengthening the Tenth Amendment Through Entrusting States (STATES Act).
“We hope that CUNA and leagues speaking with one voice on this issue will highlight the importance of Senate consideration of S. 1200,” said CCUL President and CEO Dan Schline. “At this point, we don’t have the challenges in the Carolinas that many states have but as state laws continue to change the financial sector needs clarity on how to serve these businesses.”
AACUL, like CUNA, takes no position on legalizing or decriminalizing cannabis, it supports the ability of credit unions to serve member businesses when legal.
Read the Full Letter »