US banks and credit unions providing financial services at federal level could soon be able to serve legal cannabis businesses.
The US House Committee on Financial Services has voted through a bill to provide the legal framework for federal banking institutions to serve cannabis businesses.
But it also needs to be passed by the full House before being sent to the Senate for a vote.
Medical cannabis has been legalised in 33 US states, with 10 of these also legalising the drug for recreational use. While states like North Carolina, Mississippi, and Nebraska have decriminalised cannabis, Vermont and Washington D.C. prohibit its sale, and a federal ban on the drug is restricting financial institutions from working with traders.
Under the new legislation, the regulator would no longer be able to penalise an institution that accepts insured deposits from cannabis businesses in states where the substance is legal.
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