Attorney General Hector Balderas joined a coalition of 19 attorneys general urging Congress to advance legislation allowing states with legalized medical or recreational marijuana to bring that commerce into the banking system.
Banks and other depository institutions are not allowed by federal law to provide financial services to marijuana businesses, even in states where those businesses are regulated.
“New Mexican businesses that supply medical marijuana to treat veterans with PTSD and cancer patients must have a lawful banking system that allows them to conduct business safely and securely,” said Attorney General Balderas Tuesday. “A regulatory system that forces businesses to operate in the shadows increases the risk of criminal activity and is contrary to the rule of law.”
The letter, sent to congressional leaders Tuesday, requests legislation that would provide a legal “safe harbor” for depository institutions that provide a financial product or service to a covered business in a state that regulates its marijuana industry.
“…Because federal government classifies marijuana as an illegal substance, banks providing services to state-licensed cannabis businesses could find themselves subject to criminal and civil liability under the Controlled Substances Act and certain federal banking statutes,” the letter states.
The attorneys general also note a recent decision by the U.S. Department of Justice to rescind guidance outlining how financial institutions could provide services to state-licensed marijuana businesses consistent with federal law.
That move, the attorneys general argue, has made even more urgent the need for congressional action to get the cash generated by this industry into a regulated banking sector.
The requested legislation would not only protect public safety by bringing gray-market financial activities into the banking sector and thus subject to law enforcement monitoring, but would also result in billions of dollars infused into the banking industry.
Joining Balderas are attorneys general from