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NJ Lawmakers Propose Access to Financial Services for CBD Companies

Albion Minerals®

Companies producing and selling hemp-derived CBD products would have access to essential banking services under new legislation introduced yesterday in the New Jersey State Senate. The legislation, introduced by State Sen. 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.

The Natural Products Association (NPA) also supports federal legislation that would confirm “the legality of hemp and hemp derived CBD products, and the legality of engaging in financial services with businesses selling hemp and hemp-derived CBD products” and “provide recommended best practices for financial institutions to follow when providing financial services and merchant processing services to businesses involved in the sale of hemp and hemp derived CBD products.”

“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 [U.S. Food and Drug Administration] for clear regulatory rules on safety, labeling, and potency. But companies also need clear rules and the ability to use America’s financial services sector to deliver this product to consumers,” said Daniel Fabricant, PhD, president and CEO of the NPA. “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.”

NPA recently worked with lawmakers in New Jersey to pass a resolution urging Congress to set a safe level and is continuing to work with the U.S. Congress and the FDA to do so. Last year, the U.S. House of Representatives passed legislation that would appropriate $100,000 for the FDA to perform a Health Hazard Evaluation (HHE) and set a safe level of CBD for consumers to use each day. The process would follow the same precedent as red yeast rice, which allows a natural product to contain a level of a drug ingredient that the FDA has determined to be safe. With the exception of Epidiolex, all CBD products in the U.S. are considered illegal by the federal government.

“Setting a safe level of consumption for CBD products at the federal level is the best way to move forward with this promising new product while protecting consumers,” added Fabricant.