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Arkansas hearing spotlights banking, insurance gaps for medical marijuana industry
Summary
State lawmakers heard industry and banking testimony that many marijuana businesses in Arkansas already use bank accounts under FinCEN guidance, while state regulators and bankers say only Congress can provide the legal 'safe harbor' banks need to operate without federal liability.
Arkansas state lawmakers on the Senate Insurance & Commerce Committee examined how the federal ban on marijuana affects banking, insurance and public safety as the state's medical marijuana market opened. Industry representatives, national banking groups and state regulators testified about compliance work underway, financial‑tracking data and the limits of state authority.
Dan Bridal, co‑founder and CEO of fintech firm Abaca, told the committee that banks are already providing services to marijuana‑related businesses if they follow the 2014 Financial Crimes Enforcement Network (FinCEN) guidance. "The cannabis industry is banked. The money is in the bank," Bridal said, adding that the state‑chartered partner bank Abaca works with has handled roughly $6,500,000 in deposits and about $4,500,000 in business‑to‑business transactions since last summer.
The nut graf: witnesses described a legal mismatch that state regulators cannot fix alone. Sabrina Bergen, vice president and…
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