New bill would let marijuana shops use banks

New bill would let marijuana shops use banks

Pot shops would have access to banks under new legislation in the Senate.

The Marijuana Business Access to Banking Act, introduced Thursday in the Senate, would allow marijuana companies to store their money in banks.

Dispensaries are currently blocked from the banking system. Even though a number of states have legalized the use of medical and recreational marijuana, it is still illegal under federal law.

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This pot paradox has forced many marijuana businesses to keep their cash in their stores because banks are prohibited from doing businesses with them.

The marijuana legislation would wipe away these prohibitions. The senators say this would improve safety and streamline taxes in the industry.

Sen. Jeff MerkleyJeff MerkleyHuman rights can't be a sacrificial lamb for climate action Senate Democrats press administration on human rights abuses in Philippines Bipartisan congressional commission urges IOC to postpone, relocate Beijing Games MORE (D-Ore.), one of the sponsors of the bill, called the present rule an “invitation to crime.”

“Current federal laws are making marijuana businesses sitting ducks for violent crimes and perpetuating negative stereotypes,” said Sen. Ron WydenRonald (Ron) Lee WydenDemocrats warn shrinking Biden's spending plan could backfire Democrats release data showing increase in 'mega-IRA' accounts Senate Democrats press administration on human rights abuses in Philippines MORE (D-Ore.), another sponsor of the bill.

Sens. Cory GardnerCory GardnerEx-Sen. Cory Gardner joins lobbying firm Biden administration reverses Trump changes it says 'undermined' conservation program Gardner to lead new GOP super PAC ahead of midterms MORE (R-Colo.), Michael BennetMichael Farrand BennetLawmakers can't reconcile weakening the SALT cap with progressive goals How Sen. Graham can help fix the labor shortage with commonsense immigration reform For true American prosperity, make the child tax credit permanent MORE (D-Colo.) and Patty MurrayPatricia (Patty) Lynn MurrayDemocrats consider scaling back new funds to fight next pandemic Tech executives increased political donations amid lobbying push Schumer, Tim Scott lead as Senate fundraising pace heats up MORE (D-Wash.) are also backing the legislation.

Marijuana groups said the bill would be a step in the right direction.

“Without banks, many of our members are forced to operate entirely in cash, which puts their employees at risk for crime,” said Aaron Smith, executive director of the National Cannabis Industry Association. “The legal marijuana industry is worth nearly $3 billion nationwide. We shouldn’t be forced to carry that around in duffel bags.”