The U.S. House of Representatives passed an amendment on Tuesday that would allow banks to do business with cannabis companies without being penalized by federal regulators.

“This will strengthen the security of our financial system in our country by keeping bad actors like foreign cartels out of the cannabis industry. But most importantly, this amendment will reduce the risk of violent crime in our communities,” said Perlmutter who had re-introduced the bill. “By dealing in all cash, these businesses and their employees become targets for robberies, assaults, burglaries, and more.”

The latest breakthrough is the fifth time in recent years that the House has passed the cannabis banking reform.

Whether as standalone legislation or as a part of broader legislation, the measure has been widely supported, even though some are pushing for more comprehensive changes to cannabis laws to happen first.

In an interview with Marijuana Moment, Senate Majority Leader Chuck Schumer (D-NY) argued that passing the Secure and Fair Enforcement (SAFE) Banking Act first could affect support for broader reform.

Photo: Courtesy of Mikhail Pavstyuk on Unsplash