Cannabis Measure Left Off Defense Bill in Setback for Industry

A marijuana banking measure was left out of a must-pass defense bill, significantly narrowing the chances that legislation to clear the way for legal cannabis businesses to use the financial system can get passed before Democrats lose control of the House in January.

A bipartisan group of senators had been negotiating to include a version of a bill known as the SAFE Banking Act in the annual National Defense Authorization Act, but the attempt ran into stiff opposition from Republican leaders.

The bill, introduced by Senators Jeff Merkley, an Oregon Democrat, and Steve Daines, a Montana Republican, would ...