Independent Community Bankers of America Want the SAFE Act Passed

September 19, 2019 | Community Banking, Insights, Regulations
https://dailyalts.com/wp-content/uploads/2019/09/57e1d0444d5bae14ea898579ce203e7c1d22dfe05559784a7d2e79d5_640.jpg

Community Banks Back Cannabis Financial Services Bill

The Independent Community Bankers of America sent a letter to the leadership of the House and the Senate urging them to pass the SAFE banking bill.

The bill would allow for cannabis companies to use banks and banking services. The letter noted that “The SAFE Banking Act would create an effective, safe harbor from federal sanctions for banks that choose to serve CRBs (cannabis-related businesses) in states and jurisdictions where these businesses are legal.”

The safe harbor would extend to banks that serve the many ancillary businesses that serve CRBs. This list includes landlords, accountants, utility providers, and others that may be paid in funds ultimately derived from cannabis sales.

The letter noticed that regulators may struggle to identify some of these ancillary businesses in places that have deregulated cannabis. The current situation has created legal and regulatory challenges for financial institutions that aren’t even engaged in serving CRBs directly.

The Independent Community Bankers of America on Pubic Safety

The letter also expressed concerns that cash-only businesses – like the current cannabis industry – can often lead to threats to public safety. As of September 2019, 11 states have legalized recreational cannabis. Another 33 others have medical marijuana laws. This quickly creates a series of challenges across the United States. It will likely fuel additional regulatory headaches in the future.

Meanwhile, according to a survey conducted by The Pew Research Center, 62% of all Americans favor legalizing cannabis. According to the survey “Majorities of Millennials (74%), Gen Xers (63%) and Baby Boomers (54%) say marijuana USE should be legal. Members of the Silent Generation continue to be the least supportive of legalization AT 39%). However, they have increased support in recent years.

Finally, with that level of public support, legalization will continue to spread. A lack of banking access will further remain a major problem for the industry without the passage of the SAFE Banking Act.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/09/0deafbe2-9873-4d57-aaaf-ecb37a567e1a__IC21947.jpg
Digital Assets: 1% Of Chileans Sign Up For Worldcoin; Rush Seen In Argentina, Too
September 28, 2023     Digital Assets, News

Worldcoin, the innovative biometric wallet and ID project, is making significant waves in Chile as it surpasses a remarkable milestone. The organization has reported that over 200,000 Chileans have embraced…

https://dailyalts.com/wp-content/uploads/2023/09/1695822001308.jpg
FinTech: Atom Bank And Kamma To Partner For Greening UK Mortgage Assets
September 28, 2023     ESG and Sustainability, FinTech, News, Real Estate

Atom bank and Kamma have formed a significant partnership aimed at addressing the pressing concerns of climate change. This collaboration brings together Atom bank’s cutting-edge banking technology with Kamma’s climate…

https://dailyalts.com/wp-content/uploads/2023/09/0_onaeojfgCZeyNabT.jpg
Venture Capital: Slope, A B2B Solutions Provider Backed By Sam Altman, Scores $30M Funding

Slope, a two-year-old AI startup based in San Francisco, has secured a substantial $30 million equity round led by Union Square Ventures and featuring participation from OpenAI’s CEO, Sam Altman….

https://dailyalts.com/wp-content/uploads/2023/09/32215763362_b62ef08e5f_c.jpg
Artificial Intelligence: Palantir Awarded $250M Contract By US Department Of Defense For AI R&D
September 28, 2023     Artificial Intelligence, Latest News, News

Palantir Technologies Inc. (NYSE: PLTR) has secured a significant contract worth $250 million with the US Defense Department. The primary focus of this contract is the research and development of…