SAFE Act Moves Forward Paving Way For Cannabis Banking In The United States
Cannabis regulation in the United States is complicated, to say the least – while cannabis is fully legal for recreation and/or medical use in dozens of states, it’s still federally illegal, and banks can be penalized heavily for working with cannabis businesses.
This means that cannabis banking is basically non-existent – and most cannabis businesses in the US are unbanked. But the new Secure and Fair Enforcement (SAFE) Banking Act could change this. Let’s get into the details.
What Is The SAFE Act And What Does It Mean For Legal Cannabis Across The US?
The SAFE Banking Act stalled in 2020, but has been re-proposed as of 2021, and is likely to pass due to the Democrats controlling congress and the presidency.
The legislation is quite complex, but basically, it provides “safe harbor” for banks and credit unions who work with marijuana-related businesses.
If the SAFE Banking Act passes, most financial institutions will be able to work directly with cannabis businesses in states where cannabis is legal for recreational or medical use – without fear of federal retribution.
Currently, this is not the case – stiff federal penalties for cannabis banking make it nearly impossible for banks to work with cannabis companies.
The Impacts Of The SAFE Act On Cannabis Businesses & Consumers
For cannabis companies, the passage of the SAFE Act means they can safely store and deposit money in financial institutions, apply for loans, and enjoy all the same opportunities and monetary tools available to other types of businesses.
For consumers, this means they will be able to pay for cannabis with cards like debit and credit cards – rather than always paying with cash. Cannabis banking regulatory changes mean that cashless payments could become the norm after the SAFE Act.
Interested In Medical Marijuana? Contact Medical Alternatives Clinics
At Medical Alternatives Clinics, we’re here to help medical marijuana patients in Colorado Springs get the medicine they need. Contact us now to schedule a consultation and get your medical card today!