Senators reintroduce the SAFE Banking Act to normalize the hashish commerce

It may come as a surprise to many: the cannabis business is still being paralyzed by federal government laws restricting banking rights. Because all banks must be insured nationwide and all federal laws continue to regard cannabis as illegal, any bank that accepts deposits, checks, or credit cards from cannabis companies is breaking the law.

This may seem like a catch-22; Most banks in America are unwilling to risk their business knowing the federal government could fall for them, but most state governments are promoting and promoting the cannabis business. Only 6 states in the US still have all forms of marijuana, including medicinal drugs, completely illegal. There is a large number of lawmakers campaigning for laws to lift restrictions on banks, and support from both parties makes it more likely than ever that they will be passed at the federal level.

Senators Jeff Merkley (D-OR) and Steve Daines (R-MT) have reintroduced the SAFE Banking Act (Secure and Fair Enforcement) before the US Senate with the support of 27 original co-sponsors. The support of both parties is critical to the goal of eliminating restrictions on financial institutions in support of the legal cannabis trade.

Problems with money and marijuana

At present, any bank that has a proven record of doing business with a cannabis business entity may be able to charge fees for processing cash taken by pharmacies. In addition, the pharmacies themselves cannot process check or credit card transactions. This puts an undue burden on pot shops, even if weed sales are legalized in their respective state. Cash transactions can lead to fraud, theft, and general business transparency inconsistencies.

“Nobody who works in a store or behind a registry should have to worry about experiencing a traumatic robbery at any moment,” said Senator Merkley. “That means we can’t force legal cannabis companies to work exclusively with cash – a nonsensical rule that is an open invitation to robbery and money laundering. Let’s make 2021 the year this law is signed so we can ensure that all legal cannabis companies have access to the financial services they need to keep their employees safe. “

State and federal conflict with the cannabis trade

In a business where controversy is high, this apparent discrepancy between state and federal law puts an undue burden on companies operating lawfully under their state’s rules. This financial double standard continues the concept that small members of minority-owned companies are disadvantaged compared to large multi-state operational agencies. Since banks do not lend money to these companies, as they are subject to a high level of liability to the federal government, it is practically impossible for entrepreneurs to secure start-up capital.

While this is not the first time legislation has been passed to bridge the government-state divide over the cannabis trade, previous attempts have stalled under former Senate majority leader Mitch McConnell (R-KY). The new laws introduced on Tuesday were supported by two parties. There are 72 delegates in the Senate whose voters would be directly affected by this decision, and the Senate leadership now appears to be much more responsive than in previous efforts.

Proponents, lawmakers, and business owners all agree that advancement in the difficult financial climate will help support positive business growth in the cannabis industry. Opening credit opportunities to marginalized communities, creating safe environments for employees and customers, and localizing the cannabis trade as locally as possible are all a breeze. It is encouraging to see the party lines putting their differences aside to work towards a common goal that will benefit Americans on this interesting path of growing the marijuana business. Stay tuned as we follow the progress of this law.

Additional resources:

At The Weed Blog, we strive to produce the latest online marijuana news sources. We also review different strains of cannabis or other edible counterparts. We want to help you find valuable information about marijuana on our website. Learn from us what you can do to promote activism in your area as marijuana laws are constantly changing. Otherwise, see the other top tier articles on cannabis tax revenue:

States after income tax receipts for marijuana

Crime has fallen and Denver tax revenues have increased after cannabis was legalized

Tax revenues for marijuana exceed tax revenues for alcohol in Colorado

Comments are closed.