The U.S. Senate Committee on Banking, Housing and Urban Affairs decided on July 16 to schedule a meeting about the cannabis industry’s need for legitimate banking.
This formal discussion, which is set to take place sometime next week, will review how quickly the industry has grown and how much important it is that the industry has access to banking services. According to Forbes, only 32 out of 100 senators signed a recent House bill regarding cannabis banking solutions that was voted on back in June. The bill received 206 cosponsors from House representatives.
Although it is clear that the Senate has fewer supporters willing to discuss the urgent need for cannabis banking, many banks and organizations have endorsed the Secure and Fair Enforcement Banking Act (SAFE). Fifty state banking associations, as well as many other high-ranking financial institutions, support of cannabis banking regulations.
“At its heart, cannabis banking is a public safety issue. It’s an $8.3 billion industry that’s currently being forced to operate almost entirely in cash,” CUNA President and CEO Jim Nussle told Forbes. “While 33 states, territories, and DC have legalized cannabis, it’s been overwhelmingly difficult to provide these businesses financial services because handling transactions are currently considered money laundering. Credit unions have been leading the way in helping to get this money off the streets. We are dedicated to finding a solution to this ongoing challenge that impacts every community around the country and look forward to working with Senate leaders during this hearing and with Congress at large.”
It’s definitely past time for some kind of regulation to be put into place. Many state attorneys support this legislation, and even big businesses like PayPal want to see legal cannabis banking. Many business owners will have their eyes on the Senate next week to see what lies in store for the financial future of cannabis.