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Insured deposits at financial institutions would see a bump if Congress provided legal safety for those banking marijuana businesses.
A new report from the Congressional Budget Office revealed that deposits would increase by $1.2 billion at banks and by $200 million at credit unions by 2022 if Congress passes the SAFE Banking Act, which provides a safe harbor for financial institutions banking marijuana businesses.
Those amounts would rise to $2.1 billion for the banking industry and $350 million for credit unions by 2029. However, those costs would be slightly offset by assessments of $9 million levied on insured financial institutions, CBO estimates.
The SAFE Banking Act is cosponsored by a bipartisan group of 184 lawmakers, and was introduced by House Financial Services Committee members Ed Perlmutter, D-Colorado; Denny Heck, D-Washington; Steve Stivers, R-Ohio; and Warren Davidson, R-Ohio.
It would prevent the Federal Deposit Insurance Corporation and the National Credit Union Administration from taking action against banks or credit unions that serve cannabis-related businesses, and prevent those regulators from limiting access to financial institutions by cannabis-related businesses.
The bill would also require the Financial Crimes Enforcement Network and the Federal Financial Institutions Examination Council to issue guidance for institutions that provide services to cannabis-related businesses.
Additionally, the bill would require reporting by financial regulators and the Government Accountability Office, impose or increase the cost of private-sector mandates on financial institutions and remove a private right of action against financial institutions.
The House Financial Services Committee advanced the bill on a 45-15 vote in March. A full House vote on the bill could happen later this summer.
