Washington, D.C.—Companies producing and selling hemp-derived cannabidiol (CBD) products would have access to financial services under new legislation introduced in the New Jersey Senate, according to a press release from the Natural Products Association (NPA).
The legislation, introduced by State Senator Robert W. Singer (R-NJ-30), would clarify that banks and credit unions will not be penalized by state regulators for working with legitimate hemp businesses.
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Banking has been an issue for CBD and hemp businesses: In June 2019, Thrive Market was forced to stop selling hemp extracts by the company that processed their customer payments; in August, the National Credit Union released guidance related to hemp; it wasn’t until September that the House of Representatives voted to allow banks to provide services to CBD companies; and in October, Square made its services available only to select CBD-related businesses.
Daniel Fabricant, Ph.D., President and CEO of NPA, said in the release: “CBD is one of the most popular products in America right now and the government needs to start taking it seriously across the board. We have already asked FDA for clear regulatory rules on safety, labelling, and potency. But companies also need clear rules and the ability to use America’s financial services sector to deliver this product to consumers. We look forward to continuing to work with Senator Singer and other lawmakers on legislation that provides clarity to this growing industry while protecting consumers.”