Congress Holds Marijuana Banking Hearing

WASHINGTON, D.C. – This week, the House held its first hearing on marijuana, Politico reports. The Financial Services Committee hearing heard from bankers about the difficulties financial firms faced because of current federal restrictions on pot and states that have eased marijuana prohibitions.

Because of the murky legalities, lenders have not been not eager to provide legitimate pot businesses with banking services, which forces cannabis sellers to use cash. Cash-only businesses can be more prone to more criminal activities, such as theft and violence. The hearing started with a photo of a military veteran working as a security guard who had been killed in a dispensary robbery.

“The fact is, you can't put the genie back in the bottle,” said Rep. Ed Perlmutter (D-CO). “Prohibition is over. Our bill is focused solely on taking cash off the streets and making our communities safer.”

Perlmutter and Rep. Denny Heck (D-WA) have been strong supporters of marijuana banking bills for several years. Many House Democrats are in favor of a federal fix to the pot banking dilemma, while House Republicans expressed concern that the current bill needed more anti-money laundering regulations.

Rep. Patrick McHenry (R-NC) questioned if the measure would mitigate the problem. “There’s a lot to be resolved,” he said, including the need for “wider inputs” beyond the Wednesday hearing.