No matter your stance on legalization, everyone that wants safe neighborhoods should support legal banking services for state-regulated cannabis businesses. The lack of access to banking services severely hinders the ability of entrepreneurs to conduct business, pay taxes, and expand operations. Along with the despicable 280e IRS tax code, access to normal banking services is a top policy change needed to allow the cannabis industry to thrive. As with most issues, banking reform is needed most by small craft cannabis boutique’s like Kind Leaf, which don’t have the deep pockets of multinational corporations.
Thankfully, we are seeing great momentum for normal banking services for the cannabis industry. The SAFE Banking Act has passed the House of Representatives, awaiting some movement in the Senate. As Marijuana Moment reports, the American Bar Association added its voice to the cause:
The group’s House of Delegates voted in favor of proposals endorsing pending federal legislation to protect banks that service cannabis businesses and calling for a clarification of rules to ensure that lawyers will not be penalized for representing clients in cases concerning state-legal marijuana activity.
Under the banking resolution, ABA “urges Congress to enact legislation to clarify and ensure that it shall not constitute a federal crime for banking and financial institutions to provide services to businesses and individuals, including attorneys, who receive compensation from the sale of state-legalized cannabis or who provide services to cannabis-related legitimate business acting in accordance with state, territorial, and tribal laws.”
ABA added that “such legislation should clarify that the proceeds from a transaction involving activities of a legitimate cannabis-related business or service provider shall not be considered proceeds from an unlawful activity solely because the transaction involves proceeds from a legitimate cannabis-related business or service provider, or because the transaction involves proceeds from legitimate cannabis-related activities.”
It is great to see some allies coming around to help out the cannabis community. Let’s keep the pressure up and momentum going. Idaho Senator Mike Crapo is currently the Senate Banking Committee Chair that will determine the fate of the SAFE Act. Please contact him and let him know that you support banking services for cannabis businesses and spread the word.