On Tuesday, a democratic senator pushed Joe Biden’s treasury nominee for a high-ranking Treasury Department position on updating banking regulations for cannabis businesses. However, House Democrats seem to be abandoning efforts to implement the marijuana financial services bill via the COVID-19 relief legislation.
Senator Catherine Cortez asked the assistant secretary treasury nominee Adewale Adeyemo, during the Senate Finance Commission’s confirmation hearing, whether he thinks the FinCEN Financial Crimes Enforcement Network 2014 guidance should be changed to set projections for financial firms that offer services to marijuana-related sectors. Cortez also asked him how would do to accomplish that.
Adewale replied that he looks forward, if appointed, to consulting his mates at the Treasury regarding that important issue and considering what amendments might be required, and doing it consistently with the president’s counsel. Through accomplishing that, he anticipates consulting the senate and the committee’s members on the best way forward.
According to the 2014 Obama administration guidance, financial firms were advised regarding how to maneuver the Bank Secrecy Act for cannabis ventures running in tandem with federal law. They also got directions on reporting necessities for liaising with customers in the marijuana industry.
Updating that counsel would indicate a positive advancement for federally legal marijuana markets. However, financial problems within the sector would also be addressed in case Congress passed a more comprehensive reform to end cannabis prohibition or independent legislation, for instance, the SAFE( Secure and Fair Enforcement) Banking Act that safeguards banks that fund cannabis business from facing penalties from state regulators.
The leaders of the Democratic House featured that bill’s language in two parts of the coronavirus relief reform that was approved during the previous congress. They also approved it as an independent measure before the pandemic. Legislators, such as speaker Nancy Pelosi, supported the incorporation of those reforms on multiple occasions.