SAFE Act awaits passage from the U.S. Senate

Simplifya executive John Vardaman says that the Federal status of cannabis laws make it one of the most transparent industries for banking. Speaking at the Money20/20 Conference in Las Vegas last week, Vardaman noted the irony of the situation. He currently serves as general counsel and chief compliance officer of Simplifya.

“The cannabis industry is one of the most regulated industries in the country, which puts a real burden of compliance on these businesses,” Vardaman said. “And that’s a real benefit for banks. More regulations mean more information, and more information means more transparency.”

Simplifya and Banking Transparency

During a panel discussion, Vardaman said he expects that the Secure and Fair Enforcement (SAFE) Act would provide badly needed protection for banks. The U.S. Senate is currently considering the bill. Therefore, the SAFE Act would help expand on an industry that has relied on Fintech innovation.

Meanwhile, the bill would enable banks to add state-leave cannabis firms around the U.S. as customers without fear of Federal intervention.

“The cannabis industry can become the most transparent industry for banks, because you have more details available into their activity than any other business,” he said. “When banks become aware of that, they can use it to their advantage.”

It remains uncertain if Senate Republicans will pass the bill that cleared the House of Representatives in September.

About Simplifya and Cannabis Compliance

Finally, Simplifya is a maker of cannabis compliance software. In late 2018, it secured a $3 million Series 3 Funding Round. Furthermore, private equity firm Merida Capital Partners led the round.

Based in Denver, Simplifya introduced its web-based compliance tool in Colorado in late 2016. The firm later expanded its services in 2018 to include California, Maryland, Massachusetts, Michigan, Nevada, Oregon, and Ohio.

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