The U.S. House of Representatives voted on Wednesday to approve a bill that would grant legal marijuana businesses access to the nation's banking system. The vote is seen as a major victory for the marijuana industry.

The bill, called the Secure and Fair Enforcement or SAFE Banking Act, was passed in the Democratic-controlled House by a 321-103 vote. The bill is the first-ever standalone cannabis legislation to be passed by either the full House or Senate.

The measure required a two-thirds majority for passage because the vote occurred under a procedure called suspension of the rules. It received more than three-quarters of the vote.

The bill, if passed by the Republican-controlled Senate and signed into law, will prohibit federal banking regulators from punishing banks that choose to serve cannabis companies doing in accordance with state law. Marijuana remains illegal at the federal level, even as more states continue to legalize it.

Banks and insurance companies will be able serve legal marijuana businesses without fear of federal reprisal if the bill is passed into law. Marijuana businesses have struggled to grow over the past few years due to the difficulty in gaining access to financial products and services.

The American Bankers Association or ABA has applauded the House passage of the SAFE Banking Act, noting that the overwhelming, bipartisan House vote was a significant step forward for public safety, transparency and common sense.

"By helping to provide clarity for the financial sector in those states where cannabis is legal, this bill will help banks meet the needs of their communities while reducing cash-motivated crimes, increasing the efficiency of tax collections and improving the cannabis industry's financial accountability," Rob Nichols, President and CEO of ABA said.

Nichols urged the Senate to follow the House's lead by "quickly passing legislation" to resolve the current conflict between state and federal law when it comes to banking cannabis.

The Cannabis Trade Federation, which lobbied in support of the bill, too has lauded the U.S. House approval of the SAFE Banking Act.

"Allowing lawful cannabis companies to access commercial banking services and end their reliance on cash will greatly improve public safety, increase transparency, and promote regulatory compliance," said Neal Levine, CEO of the Cannabis Trade Federation.

For comments and feedback contact: editorial@rttnews.com

Health News