On Wednesday, lawmakers in the US reintroduced the Secure and Fair Enforcement (SAFE) Banking ACT in the House and Senate. This legislation targets banking services for the cannabis industry. An important development for the entire cannabis market.
Senator Merkley: “Let’s make 2023 the year we get this bill signed into law so we can make sure all legal weed companies have access to the financial services they need to keep their employees, their businesses and the community safe .” Senate Majority Leader Chuck Schumer, DN.Y., expressed support for the legislation on Thursday.
Confidence in cannabis sector
Trulieve Cannabis Corp and Terrascend Corp rose by significant percentages on Thursday. The reintroduction of the SAFE Banking Act seemed to boost hope in the industry. “The SAFE Banking Act will provide much-needed relief to businesses of all sizes and act as a springboard to broader reform,” said Matt Darin, CEO of cannabis operator Curaleaf.
Under current federal law, banks and lenders face federal prosecution and fines if they provide services to legal marijuana companies because cannabis is still a Schedule I substance, the same classification as heroin and LSD. According to the federal Drug Enforcement Administration, Schedule I substances are defined as drugs with no accepted medical use and a high potential for abuse.
Without access to financial services, legitimate businesses in the industry are forced to run their businesses solely with cash, which can lead to theft, money laundering and organized crime. It is high time for Congress to address the irrational, unfair and unsafe ban on basic banking services. Key elements of the bill protect banks that work with legal cannabis businesses from sanctions by federal regulators.
De legislation also creates a safe haven from criminal prosecution, liability and asset forfeiture for banks, their officers or employees. Is this a new historic step?
Source: CNBC com (EN)
