The SAFE Act failed to pass again, which may pose a threat to the expansion of the cannabis economy in the United States. Many states are legalizing cannabis, but since it is still federally illegal, banks cannot work with most cannabis companies, making transactions difficult. Often times, transactions are cash only, which exposes business owners and patrons to crime.
Thr SAFE Act is a proposed piece of legislation that would allow banks to interact with cannabis companies. Currently, it is tricky for cannabis companies to accept safe payments, expand due to investments and real estate and conduct business with credit cards.
Cannabis companies are mainly cash only, which poses risk to consumers and businesses in the sphere. Many high-profile robberies have occured because criminals know there will be cash on the premises of cannabis businesses, which hurts the industry overall.
The SAFE Act is a bridge before federal legalization of cannabis occurs. It enables entities that sell cannabis in states where it is legal to use banking services. This is huge, because cannabis enterprises can take debit and credit payments, acquire real estate easier to expand, issue stock from the USA and more. It's a further step to legitimacy and the growth of a new and progressive enterprise.
I am no fans of huge banks. I know that taking cannabis companies public is occuring, and would prefer local banks and credit unions fund and process payments for cannabis enterprises. The SAFE Act is a good step in the direction of legalization. Cannabis needs to be reclassified and decriminalized nationwide first as infrastructure is developed locally. I am in favor of legalization through the courts and this helps further legitimize the industry in the minds of the public and government as well.
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