Everyone has heard the stories of dispensary owners having to hide their business cash in all different places. From the basement to the backyard many of these stories are from before the beginning of the regulated cannabis industry. Because cannabis is still federally illegal many businesses require cash only. Thanks to the SAFE Banking Act all of those stories will hopefully be put to rest.
In March of 2019, the House of Representatives introduced the SAFE Banking Act. The bill then advanced to the full House later that month, and in September of 2019, the bill was passed by the House of Representatives. In November of 2020, the SAFE Banking Act will be voted on again by Senate.
What is the SAFE Banking Act
The cannabis industry started as a cash-only business to prevent money laundering; however, now with state-by-state regulated cannabis, there is a necessity to move for federally legal investing and loaning.
The SAFE Banking Act is a law that will help protect public and private banks, venture capital firms, and other lenders looking to securely finance the regulated cannabis industry. Not only have dispensaries and growers been dealing with cash, but CBD and hemp growers have also been faced with the challenges of banking. With the SAFE Banking Act, businesses will be able to open accounts, take out loans, deposit money, and accept credit cards. This act will be a key turning point for the industry and help to keep cash off the streets.
Momentum from the SAFE Banking Act is showing that financial institutions are much more interested in the regulated cannabis industry, and they feel more confident than ever thanks to the Financial Crimes Enforcement Network (FinCEN). FinCEN protects businesses working with cannabis while the banking bill is underway.
Passing the SAFE Banking Act will not only help the businesses and business owners but it will also help the employees. Some employees in the industry struggle to receive house or car loans simply for working with regulated cannabis. Although the SAFE Banking Act doesn’t remove cannabis as a Schedule I drug federally it does help to promote cannabis securely.
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