Reasons why the SAFE Banking Act of 2023 will PASS
The token of trust that will skyrocket the cannabis industry
Now is the time for the cannabis industry. States like Colorado and California have been tremendous early adopters to highlight the good and bad of legalized marijuana. Currently, the greatest challenges facing the businesses in legalized states are banking, profitability, and safety. This bill solves all three.
The Secure and Fair Enforcement (SAFE) Banking Act is a bill that aims to provide legal protections for financial institutions that serve cannabis-related businesses in states where cannabis is legal. Currently banks would be punished by federal law for providing services to the cannabis industry. In short, the risk is the entire banking business itself.
Why has this bill not passed the senate in the past? The answer is simple, there have not been a majority of states with legalization. Therefore, a senate member voting for this bill but voting against legalization in their own state would be a conflict.
There are now 23 states with full legalization. It’s reasonable to believe that each senator in those states understands the potential gain in tax revenue, gain in profitable (not to mention compliant) businesses, along with dramatic increase in public safety due to removal of wholly cash businesses.
There are enough decriminalized states paired with legalized medical use states to put this over the top.
After many years of consideration and tremendous bipartisan support in Congress, the Senate will give this a look and give it a passing vote. Here are the reasons why:
- Public Opinion: The public opinion regarding cannabis has been evolving, with a majority of Americans supporting its legalization. As more states legalize cannabis for medical or recreational use, there may be growing pressure on lawmakers to address the banking issues faced by cannabis businesses. Senators may consider the changing public sentiment when deciding to support the SAFE Banking Act.
- State Interests: The legalization of cannabis has created a flourishing industry in many states, leading to job creation and tax revenue generation. By allowing cannabis businesses to access banking services, the SAFE Banking Act can address public safety concerns related to handling large amounts of cash and enhance state-regulated cannabis markets. Senators representing states with legal cannabis industries may support the bill to protect and support their constituents’ interests.
- Financial and Safety Concerns: Currently, cannabis businesses often operate on a cash-only basis due to the federal prohibition on cannabis, as traditional financial institutions are hesitant to provide banking services to them. This cash-based system poses security risks, making cannabis businesses vulnerable to robberies and other criminal activities. The SAFE Banking Act could address these concerns by enabling cannabis businesses to access banking services, reducing the risks associated with operating solely in cash.
- Bipartisan Support: The SAFE Banking Act has received bipartisan support in the past. In the previous Congress, the bill passed the House with a significant majority, including support from both Democrats and Republicans. This bipartisan backing could increase the chances of the bill passing the Senate as well, as it may attract support from senators across the aisle who recognize the need for a solution to the banking challenges faced by the cannabis industry.
- Economic Impacts: The SAFE Banking Act could have positive economic impacts. By allowing cannabis businesses access to banking services, it could promote business growth, facilitate investment, and create jobs in the cannabis industry. Senators may consider the potential economic benefits of the bill when making their decision.
- Established Compliance solutions: There are several established businesses that have served both the Cannabis and other regulated markets for years that provide comprehensive solutions to provide individual businesses and the industry as a whole tremendous credibility and trust.
The impact of this bill will directly impact a new “boom” in the cannabis industry. Consumers will gain trust, businesses will be more profitable, and social acceptance will reach an all time high.
