Approved overwhelmingly in a vote by the House of Representatives (321-101) on April 20, the SAFE Banking Act would allow banks and other financial institutions to serve state-legal cannabis businesses without fear of federal repercussions. The initial approval is welcome news to those state-legal operations that have struggled to gain access to traditional banking services such as checking accounts, payroll, and lines of credit. The lack of traditional financial support has hindered the ability of many entrepreneurs to raise capital for operations, which has led to a cash-dominant business model that creates a huge public-safety risk to a multi-billion-dollar industry.
Industry leaders are celebrating the House’s recent decision and have been more optimistic that the Senate will follow suit, compared to 2019, when similar cannabis banking reform legislation was introduced but later failed in the Senate. Cannabis banking reform is believed to be the most likely piece of legislation to pass in 2021, with overwhelming bipartisan support. For industry leaders and business owners alike, banking reform is seen as a huge component for the growth and expansion of the cannabis industry.
Momentum continues to build for the cannabis industry and the revenue projections for the next 5-10 years are lucrative. Our team of experienced cannabis professionals have the expertise to help navigate this very dynamic and heavily regulated industry.