House Republicans Drop Banking Protections for Cannabis Businesses Amid Internal GOP Opposition
House Republicans recently removed a provision designed to protect banks from cannabis-related crackdowns from a government funding bill after opposition from GOP lawmakers. The original measure, part of an annual financial service and general government bill, aimed to prevent penalties for banks providing services to businesses legally involved in hemp and cannabis operations. This protection would have covered entities like builders and producers in states where cannabis is legal.
Rep. David Joyce (R-Ohio), who chairs the subcommittee responsible for crafting the funding bill, advocated for the provision, emphasizing the need for the federal government to respect the decisions of over 40 states that have enacted cannabis reforms. He highlighted how cannabis regulation improves public safety and enhances the quality of life.
However, opposition arose from some Republican members, especially Rep. Chuck Edwards. He argued that cannabis remains federally illegal as a Schedule I drug, making any federal protection for cannabis-related banking problematic. Edwards expressed concerns over the potential negative effects of cannabis, expressly on younger persons.
Despite the setback, Joyce remains committed to cannabis banking reform. He has been a leading figure in advancing the Secure and Fair Enforcement (SAFE) Banking Act of 2023. This bill seeks to provide banking access to legal cannabis businesses. While the provisions have broad bipartisan support, Joyce acknowledged the need to balance legislative duties. with the need to fund the government and assured that the fight for cannabis banking reform is not over.
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