Cannabis Lawmakers Move Forward on Cannabis Banking Deregulation
The California state legislature’s most recent session includes measures to reform cannabis taxes and expand industry access to banking. The bills now head to Gov. Gavin Newsom’s desk and, if approved, could shape the next phase of one of the nation’s most dynamic cannabis markets.
Many big banks, being federally regulated, have avoided working with cannabis operators due to cumbersome regulations about doing business with clients engaged in what remains federally illegal activity. While California lawmakers can’t change the federal landscape, Assembly Bill 1525 removes state penalties for working with cannabis clients.
“This bill would provide that an entity, as defined, that receives deposits, extends credit, conducts fund transfers, transports cash or financial instruments, or provides other financial services, including public accounting, as provided, does not commit a crime under any California law solely by virtue of the fact that the person receiving the benefit of any of those services engages in commercial cannabis activity as a licensee,” a Legislative Counsel Digest description of the bill says.
Advocates are hopeful the bill’s adoption by California lawmakers will send a message to Congress about the need for federal reform.
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