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NAFCU reiterates support for the bipartisan SAFE Banking Act ahead of hearing
NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the Senate Banking Committee ahead of its hearing to examine marijuana banking. In the letter, Thaler expressed support for the Secure and Fair Enforcement (SAFE) Banking Act, which would provide greater clarity and legal certainty -- at the federal level -- for financial institutions to provide products and services to marijuana-related businesses (MRBs) in states that have legalized marijuana.
Thaler noted that while NAFCU “does not have, and is not taking, a position on the broader question of the legalization or decriminalization of marijuana at any degree at the federal or state level,” it does support more clarity at the federal level for credit unions “that choose to provide financial services to state-authorized MRBs and ancillary businesses that may serve those businesses in states where such activity is legal.” He explained the Schedule I classification of marijuana causes credit unions to “remain hesitant to provide financial services to these members and their small businesses,” even in states where these businesses are legal to operate.
“While the SAFE Banking Act of 2023 does not address every issue on this front, it seeks to provide a safe harbor for financial institutions that wish to serve such businesses and would be an important step towards improving clarity and addressing what is often perceived as misalignment between federal and state laws,” wrote Thaler. “It is with this in mind that NAFCU urges you to support the SAFE Banking Act of 2023 and advance it in the Senate.”
NAFCU recently wrote to Congress to express support for the SAFE Banking Act after its introduction in both the House and Senate in April. The association will continue to advocate for this bipartisan legislation to allow more clarity and legal certainty to credit unions.