The cannabis industry as a whole continues to overcome significant challenges both nationally and locally in California. A multi-billion-dollar industry that operates as cash only simply isn’t a sustainable business model.
Luckily, elected officials in Washington, D.C. understand that the issue of banking must be addressed. The introduction of HR 1595 earlier this month is a true bi-partisan effort by 134 co-sponsors in the House of Representatives to safeguard banks from being punished by federal banking regulators simply for working with cannabis-related businesses that are obeying state laws.
The Secure and Fair Enforcement (SAFE) Banking Act was introduced on March 7, 2019, and already has secured support from more than a quarter of all possible members of the house in only one week. The proposed legislation would prevent banks U.S. banks from having their services halted, access to the Deposit Insurance Fund limited or having punitive action taken on loans made to cannabis-related businesses simply for operating in the legal cannabis sector.
California’s cannabis industry has endured its share of growing pains, but the most populated state of nearly 40 million people and the future epicenter of the global cannabis industry needs to establish a banking system for the wellbeing of businesses and consumers alike.
How quickly can this happen? It’s only speculation at this point, but the sooner elected officials in either Sacramento or Washington, D.C. put that system in place, the better – for everyone.