Rep. Earl Blumenauer, D-Ore.

Rep. Earl Blumenauer, D-Ore., today praised an apparent proposal by Attorney General Eric Holder to make it possible for marijuana growers and distributors to deposit their money in banks without fear of prosecution for violating federal laws.

During an appearance at the University of Virginia on Thursday, Holder said that the Obama administration will soon announce regulations to allow banks to do business with legal marijuana sellers, Politico reported.

“You don’t want just huge amounts of cash in these places. They want to be able to use the banking system,” Holder said.

“There's a public safety component to this. Huge amounts of cash — substantial amounts of cash — just kind of lying around with no place for it to be appropriately deposited is something that would worry me, just from a law enforcement perspective.”

Holder added that the Justice and Treasury departments are working on the regulations.

The federal banking accommodation comes in the wake of decisions by voters in Colorado and Washington state to legalize the sale and possession of marijuana. The moves have created legal tensions, since marijuana remains illegal under federal law. One particular problem has been the refusal of banks to deal with pot-related businesses out of fears they will be accused of violating money laundering laws.

Holder indicated earlier that the Justice Department will not prosecute growers, sellers and users unless there are other criminal issues involved or it is grown on federal lands such as those in the U.S. Forest System.

Blumenauer said in a statement today that Holder and the Obama administration are “unquestionably making the right call” and that he will circulate a letter to his congressional colleagues asking President Barack Obama to remove marijuana from Schedule I of the Controlled Substances Act.