Tag: SAFE Banking Act

U.S. Treasury Secretary Tells Congress to Deal with Cannabis Banking Issues

As cannabis legalization has moved more mainstream, we have seen more and more progress at the federal level, but much-needed reforms are moving entirely too slowly, especially for those operating businesses that could use normal banking services and tax policies. With support across demographics, it can be extremely frustrating to the cannabis community and industry to see bills stalled, such as the SAFE Banking Act that managed to pass the House, but still awaits a Senate hearing. It appears that you can add Trump Treasury Secretary Steve Mnuchin to the list of those growing irritated with Congress as he told congressional members how the lack of banking services is impacting the IRS, as The Hill reported:

“This creates significant problems for the IRS,” Mnuchin said at a hearing held by a House Appropriations subcommittee.

Many states have legalized medical or recreational marijuana. However, banks have been hesitant to serve marijuana businesses even in states that have legalized use of the drug because they want to avoid violating federal anti-money laundering and illicit finance laws. That has led to cash-only marijuana businesses.

Without taking a stance on how he thinks the federal-state conflict concerning marijuana should be resolved, Mnuchin urged Congress “to deal with this one way or another.”

As The Hill noted, Idaho Republican Senator Mike Crapo is an obstacle to passing sensible cannabis banking legislation in the Senate. Spread the word and make sure that he hears from plenty of people, especially his constituents.

 

 

 

The American Bar Association Passes Resolutions Supporting Cannabis Banking Rights

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.

Cannabis Community Must Rally to Pass Banking Bill in the U.S. Senate

Those thinking that the cannabis industry is a get-quick-rich plan are most likely to be severely disappointed. A long list of obstacles hinder cannabis businesses from over regulation to over taxation, at all levels of government. The lack of access to banking services is one major hurdle for hard working entrepreneurs that are foundational pioneers in the burgeoning industry. The lack of a bank account poses enough problems, but without the business loans and other programs available to other industries, growth is severely stifled.

Thanks to the diligence of advocates, we won a major victory by passing the Secure and Fair Enforcement (SAFE) Act at the United States House this year, but unfortunately the much-needed banking bill faces a tough path in the Senate. Passage in the Senate will take a strong lobbying effort by the cannabis community after Idaho Senator Mike Crapo, while open to passing banking legislation, announced his opposition to the SAFE banking Act, as Marijuana Moment reported:

A powerful Senate committee chairman said on Wednesday the he opposes House-passed marijuana banking legislation and laid out potential changes he would like to see to the bill before he takes it up in his panel.

Among other amendments being floated for public feedback is a 2 percent THC potency limit on products in order for cannabis businesses to qualify to access financial services as well as blocking banking services for operators that sell high-potency vaping devices or edibles that could appeal to children.

“I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho,” Sen. Mike Crapo (R-ID), who chairs the Senate Banking Committee, said in a press release. “I also do not support the SAFE Banking Act that passed in the House of Representatives. I have significant concerns that the SAFE Banking Act does not address the high level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system. I welcome input from all interested parties on how to thoughtfully address these concerns.”

Regardless of one’s stance on cannabis legalization, everyone should support banking access for industry participants. The SAFE Banking Act will help businesses grow, creating more jobs and generating more revenue. Public safety and prompt tax payments will also improve if banking services are fully legalized. The lack of banking services hurts small and medium businesses the most and these mom-and-pops and craft cannabis boutiques need our support, both with our dollars and our political activism.

The future of the cannabis industry depends upon our community shopping with local companies and urging our elected officials, especially United States Senators, to treat the industry like any other business sector. It certainly seems like Idahoans need to contact Senator Crapo and it is imperative that we make our voices heard. We’ve come a long way, we just need to remain vigilant and keep making progress for the cannabis community step by step, piece by piece, law by law.