The House passes a bill that would allow banks to work with cannabis companies

WASHINGTON (Reuters) – The US House of Representatives voted Wednesday for legislation allowing banks to provide services to cannabis-producing companies in states where this is legal.

By a vote of 321-103, lawmakers approved the bill, which is now heading to the Senate. The bill received almost unanimous support from the Democrats, as well as nearly half of the Republicans.

The measure is now heading to the Senate, where his fate is uncertain. The Senate chairman of the banking group, Mike Crapo, said he hoped to consider adopting similar legislation in the coming months, but it is not clear whether the Senate the full vote on such a measure, analysts say.

Some Republicans are reluctant to give the green light to banks to engage in the marijuana trade while it is still illegal at the federal level. And some Democrats said they would prefer to consider broader legislation on marijuana legalization or criminal justice reform rather than a targeted banking bill.

The bill clarifies that legitimate cannabis business products would not be considered illegal, and orders federal regulators to set rules about how they would oversee such banking activities.

Banks have endorsed legislation by informing lawmakers of the need to know if it is possible to deal with cannabis companies when this is legal at the state level despite the fact that marijuana remains illegal in the eyes from the federal government.

"Our members are committed to meeting the financial needs of their communities – including those who voted for the legalization of cannabis," said the American Bankers Association in a letter to legislators on Tuesday to solicit their support.

Thirty-three states allow some form of legal cannabis use, but banks have generally refused to deal with companies selling marijuana or related companies for fear of violating federal laws.

In particular, banks are concerned that taking deposits in private companies is a violation of federal anti-money laundering laws, which could jeopardize their federal charter or access to federal payment systems.

This has left marijuana companies with extremely limited opportunities, including relying on only a handful of small financial institutions or doing business strictly in cash.