DeutschHello dear readers! Today we take a look at the changing relationship between banks and the cannabis industry in the US.
Over 800 banks show interest
In Washington, DC, over 800 banks and credit unions have officially confirmed their relationships with licensed cannabis businesses to the US government. This is evident from the latest quarterly data from the US Treasury Department. This is a significant increase on the previous year’s figures, when 553 banks and 202 credit cooperatives offered similar services.
The challenge of federal law
Federal law does not make it easy for banks and other financial institutions to maintain relationships with cannabis companies. Why? Because cannabis is still categorised as a Class I narcotic. The House of Representatives has tried seven times to pass legislation that would allow such relationships, but the Senate has so far failed to support these effort However, there is hope: on 27 September, the Senate Banking Committee will discuss a new version of the SAFER Banking Act.
The importance of banking services for the cannabis industry
A survey conducted by Whitney Economics last year shows that over 70% of cannabis companies surveyed see “lack of access to bank or investment capital” as their biggest challenge. By comparison, only 42% see “government regulations” and 39% the “influence of the illegal market” as the biggest problem. Paul Armentano, Deputy Director of NORML, emphasises how important access to financial services is for the industry, especially for smaller and minority-owned businesses.
Final thoughts
The cannabis industry is constantly growing and developing. With this development comes the need for solid financial services. It remains to be seen how legislation will develop in the coming months, but one thing is certain: the relationship between banks and the cannabis industry is becoming increasingly important.
Hopefully this article has given you an insight into the current situation. Stay tuned for more updates!