Illinois State Treasurer Michael Frerichs says outdated banking rules threaten financial institutions that do business with the legal cannabis industry.
The conflict between Illinois law on legal cannabis use and banking regulations has pushed Illinois’ medical cannabis pilot program primarily into a cash-based business because most banks and credit unions refuse financial services to the cannabis industry.
Frerichs on Monday is expected to release details of legislation aimed at modernizing current banking rules that threaten financial institutions with closure if they do business with the cannabis industry.
Legislation (HB 2980 and SB 2023) pushed by Frerichs would prohibit the Illinois Department of Financial and Professional Regulation from any action that would penalize or dissuade banks and credit unions from serving cannabis-related businesses.
Sponsoring the legislation in the Illinois General Assembly are Rep. Jehan Gordon-Booth and Senator Toi Hutchinson.