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Will credit unions receive more guidance and clarity related to providing financial services to marijuana-related businesses (MRBs) this year? NAFCU Regulatory Affairs Counsel Kaley Schafer, in a new Compliance Blog post, reviews the current landscape and provides insights into how the presidential election could impact the possibility of federal legislation.

In conjunction with this blog, NAFCU has released an updated issue brief that provides credit unions with comprehensive, up-to-date information on federal legislative efforts and state-level marijuana laws.

Schafer notes that the House last year passed the bipartisan Secure and Fair Enforcement (SAFE) Banking Act, designed to provide a safe harbor for credit unions and other lenders that serve MRBs in states that have legalized the drug. In addition, the NCUA was the first financial services regulator to issue interim guidance allowing federally insured credit unions to provide certain financial services to legally-operating hemp businesses as hemp-derived products became legal at the federal level under the 2018 Farm Bill. Other banking regulators later released similar guidance after the U.S. Department of Agriculture (USDA) issued an interim final rule in October that outlines provisions for legal hemp production.

"Despite this movement, the future of a federal safe harbor to bank MRBs remains hazy (pun intended)," Schafer writes. "Given the Senate's current stance on House-passed legislation, the fact that 2020 is an election year, and there may be bigger fish to fry, we may not see the successful passage of legislation. But, if we see a shift in Democratic control of the Senate, then it is very possible that legislation may be passed in 2021."

Senate Banking Committee Chairman Mike Crapo, R-Idaho, in December requested public feedback on legislative components of potential legislation to be considered by the Senate. Schafer outlines Crapo's suggestions to address concerns in the blog.

Schafer also provides insights into the regulatory landscape as serving hemp-related businesses was included on the NCUA's 2020 supervisory priorities, the Food and Drug Administration targets illegally sold CBD products, and several states continue to pursue various forms of marijuana legalization.

Read the full blog.

While NAFCU has not and will not take a position on the legalization or decriminalization of marijuana, the association has several resources on the issue and continues to encourage Congress to consider legislative complexities as several states have legalized the drug.

The association has another Compliance Blog post on the issue, an article in the association’s August 2019 Compliance Monitor newsletter, and a feature in its bimonthly magazine. A webinar is now available on-demand, and the association has also produced a pros and cons document to help credit unions determine if serving MRBs is right for their institution.