House Takes Its Sixth Hit on Cannabis Banking Provisions -

"The House passed provisions for the sixth time that would allow cannabis companies to access the banking system, but the latest action, as an amendment to the China competition bill, may have little better chance than earlier ones to become law."

Why this is important: State legalized cannabis companies lack access to financial services such as checking accounts, payroll services, credit cards and working capital lines of credit due to a federal prohibition on taking deposits and providing banking services to such businesses. Recently, the House of Representatives passed legislation, as an amendment to the America COMPETES Act of 2022, a bill aimed at boosting U.S. competitiveness with China, which would provide legal cannabis businesses with access to financial services. Champions for the amendment cite to, among other things, safety concerns for cannabis businesses who typically operate their businesses in cash only, which invites criminal activity. Many believe the provisions will die in the Senate, as similar legislation has done five times previously, only to leave cannabis businesses in limbo yet again.