The US House of Representatives has approved a bill that would allow banks to legally provide services to cannabis companies, reports Reuters.

So far, 36 US states have legalised the medicinal use of cannabis and 17 have allowed adult use but banks have been unwilling to do business with cannabis companies fearing legal consequences. This is set to change after the US House of Representatives approved a bill, which clarifies that proceeds from legitimate cannabis businesses would not be considered illegal, according to Reuters.
The new legislation, which was approved 321 – 101 by lawmakers, would be a huge step for the industry that has had to rely on cash and other payment methods in the past.
According to Reuters, the American Bankers Association is in favour of the SAFE Banking Act.
“Banks find themselves in a difficult situation due to the conflict between state and federal law, with local communities encouraging them to bank cannabis businesses and federal law prohibiting it. Congress must act to resolve this conflict,” the group stated in a letter to lawmakers.