Cannabis Business Times
Delaware Democratic Gov. John Carney signed legislation last week that grants legal protections to financial institutions that provide services to cannabis-related businesses licensed or registered under state law.
Legislative-Advisory-51House Bill 355, sponsored by Rep. Ed Osienski and Sen. Trey Paradee, was crafted in partnership with State Treasurer Colleen Davis. The legislation clarifies that banks, credit unions and other financial entities can safely work with cannabis cultivators, distributors and retailers without risking criminal liability.
“Banks and credit unions are hesitant to serve the marijuana industry because of concerns regarding federal prosecution or penalties since marijuana remains illegal under federal law,” Davis said when the bill was introduced in March.
“H.B. 355 will provide state-level legal protection, and a clear legal framework for banks, payment processors, and other financial service providers to follow,” Davis said. “It can also ease concerns about federal enforcement and regulatory compliance among these businesses—since it allows them to demonstrate to federal agencies that they’re following a clear legal framework, ultimately leading to a safer and more transparent marijuana industry.”
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