House Sponsors High on Marijuana Banking Passage

House supporters of marijuana banking legislation are feeling confident that their bill, named The SAFE Banking Act of 2021, will pass the House (as it did in the last session) and then a version of it, unlike last session, will be considered in the Senate. The bill would provide a safe harbor for credit unions and banks that provide services to cannabis-related businesses in states where marijuana is legal. Currently those businesses are forced to operate on a cash basis.

Banking Chairman Brown Pushing Federal Digital Wallet Proposal

Senate Banking Chairman Sherrod Brown (D-Ohio) intends to introduce his “Banking for All Act” again this year. It would allow anyone to set up a free bank account at a bank, credit union or Post Office. The bank account, known as a FedAccount, would serve as a digital wallet and would solve the problem of delivering stimulus payments and tax credits to citizens who do not now have bank accounts.

GOP Senators Push Legislation to Prevent ‘Operation Choke Point’

Republican senators this week introduced legislation that would prohibit large banks and credit unions from refusing to provide banking services to legal businesses. It is an attempt to prevent the Biden Administration from restarting Operation Choke Point, an Obama Administration project that was intended to hold financial institutions accountable for processing known fraudulent transactions. Republicans worry that approach would allow banks to avoid providing services to gun-related businesses and other controversial business ventures.