Cannabis firms are still considered illegal businesses in the U.S. However, it looks like there's hope for entrepreneurs who want to start selling marijuana, thanks to a new legislation.
The Secure & Fair Enforcement Regulation (SAFER) Banking Act was introduced in May 2017. Now, it looks like this legislation is getting close to becoming law.
Will the U.S. government really allow the SAFER Banking Act to become a law to legalize cannabis businesses?
SAFER Banking Act: What It Means to Cannabis Businesses
According to The Guardian's latest report, 38 U.S. states already legalized cannabis for medical use. Meanwhile, 23 of them allow the use of marijuana for recreational purposes.
Aside from these, eight more U.S. states decriminalized the use of cannabis. However, although the use of marijuana is already legal in numerous U.S. states, running cannabis businesses is still somehow illegal.
Unlike normal businesses, cannabis firms can't easily run their advertisements on Facebook and other social media platforms. TV or radio stations also don't allow marijuana commercials.
Another issue with cannabis businesses is that they can't do any campaigns outside their state since interstate commerce is illegal. But, the major problem for marijuana entrepreneurs is opening bank accounts.
Although they can choose from around 200 independent and community financial firms, these banks commonly don't offer online banking, wire transfers, international access, investment options, financial stability, etc.
To make it simple, all these issues prevent cannabis firms from getting the financial services they need. They are usually forced to store huge amounts of cash in their stores, making them more vulnerable to thefts and other crimes.
But, all these problems can be solved if the U.S. Senate decides to enact the SAFER Banking Act.
About SAFER Banking Act
On Sept. 27, Reuters reported that A U.S. Senate committee voted to push the SAFER Banking Act to the Senate floor. This means that it is getting close to becoming a law.
If this legislation is passed, it allow cannabis businesses to have the same benefits and opportunities that other legal companies receive.
The SAFER Banking Act will not only prove cannabis firms the capability to deposit their money into banks, but it will also allow them to take out loans when opening their retained stores.
"What this should do is lead to generational wealth in communities of color that have been denied that ability," explained Esta Bigler, the Director of Labor & Employment Law at the New York State School of Industrial and Labor Relations.
As of writing, the SAFER Banking Act is still waiting to be passed by the U.S. Senate and House of Representatives. If ever it happens, then U.S. President Joe Biden can just sign it to turn it into a law.
