League Supports Marijuana Banking Provisions' Inclusion in NDAA

Your League is closely watching negotiations over the defense authorization bill now before the U.S. Senate. We are keenly interested in the marijuana banking provisions added by the House, given that the Commonwealth is legalizing adult-use cannabis. 

As in other states that have legalized adult-use cannabis, credit unions and banks here in Virginia will face a murky legal landscape if they decide to serve cannabis-related businesses. The possession, distribution or sale of marijuana remains illegal under federal law, which means any contact with money that can be traced back to state marijuana operations could be considered money laundering and expose a financial institution to significant legal, operational and regulatory risk.

Your League has contacted the office of Sen. Tim Kaine to express support for keeping the marijuana banking provisions in the bill, which is considered must-pass legislation. Sen. Kaine is a member of the Armed Services Committee.

Consideration of the legislation hit a snag this week when Republican senators voted against moving toward a final vote on the policy bill Monday evening, demanding that Democrats agree to hold floor votes on more GOP amendments.

A bipartisan group of the nation’s governors is pressing congressional leaders to ensure that a marijuana banking plan is included in the defense authorization bill.

“Simply put, this is a public safety issue that Congress has a responsibility to address,” the 24 governors and Washington, D.C. Mayor Muriel Bowser wrote in the letter.

The House version of the defense authorization bill includes a provision that would provide credit unions and banks with a safe regulatory harbor for simply providing services to a marijuana-related business. In addition, the House passed a stand-alone cannabis banking bill earlier this year.

Credit union trade groups have endorsed the banking legislation, as has National Credit Union Administration board member Rodney Hood.

Virginia is following a multi-year path on legalizing adult-use cannabis. Following reenactment by the 2022 General Assembly, the Cannabis Control Authority, advised by a Health Advisory Council, will complete regulations, implement a social equity program, and issue business licenses. On January 1, 2024, assuming reenactment, legal sales to adults 21 and older can begin.

Related: Senators Urge Committee to Include SAFE Banking Act in NDAA