U.S. Rep. Andy Barr (R-KY) applauded new federal guidance clarifying the legality of industrial hemp and relaxing the requirements for banks doing business with hemp-related companies.
“I want to thank the regulators for issuing this guidance and for their responsiveness to my requests,” said Rep. Barr, who requested the guidance in his role as a senior member of the U.S. House Financial Services Committee. “This is an important step to help the hemp industry in Kentucky thrive, but there is still work to do.”
The guidance issued on Nov. 3 came from the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Financial Crimes Enforcement Network (FinCEN), and the Conference of State Bank Supervisors.
FinCEN will issue additional guidance after further reviewing and evaluating the U.S. Department of Agriculture’s interim final rule on the production of hemp, according to the statement.
The 2018 Farm Bill, which Rep. Barr supported, legalized industrial hemp and hemp-related products, however many hemp-related businesses face ongoing challenges in accessing banking services, the congressman said during a Dec. 4 House Financial Services Committee hearing.
Rep. Barr also thanked the regulators for issuing the guidance but urged them to expand it to include payment processors, which also serve hemp-related businesses.
His Kentucky constituents have said that uncertainty about the legality of payment processing for hemp-related businesses remains a problem facing the industry, said Rep. Barr.