Post date: 5/12/2021
Change is Around the Corner for Marijuana Businesses – Secure and Fair Enforcement Banking Act Passes the U.S House and Heads to the Senate
“…A 2018 law – the Federal Farm Act – took some of the sting out of federal cannabis prohibitions by reclassifying hemp (defined as any cannabis plant containing less than 0.3% THC) as a commodity, on par with other agricultural commodities, such as corn and soybeans.
The U.S. Departments of Justice and Treasury, meanwhile, have issued guidance, such as heightened transaction monitoring by banks and credit unions that want to serve businesses in the cannabis industry. But to date, only a few dozen banks and credit unions have opened accounts for cannabis businesses.
The situation has become so dire that one state, California, has proposed offering a new category of state banking licenses to institutions that exclusively serve marijuana dispensaries and other cannabis businesses.
Federal relief may be on the way, in the form of a proposed law, the Secure and Fair Enforcement (SAFE) Banking Act, which would create a “safe harbor” for banks and credit unions that want to open their doors to cannabis businesses. The proposal passed the U.S. House and is awaiting action in the Senate…”