Merchants in the cannabis industry have had had a rough time doing business because they lack access to financial services. But things began to take a turn as of late last of month thanks to a historic vote by the House of Reps.
The United States’ House of Representatives voted in favor of a bill that would provide legal marijuana businesses easy and safe access to financial institutions.
Having laws eliminating banking restrictions for cannabis firms pass through the House seemed like a far-fetched dream a few years ago. But the performance of the marijuana sector and the demand for banking solutions for this ever-thriving sector have all paved way for a promising future.
The SAFE Banking Act was sponsored by a group of representatives such as Ed Perlmutter, Denny Heck, Steve Stivers and Warren Davidson who made it clear that the bill intends to ensure legitimate marijuana merchants can access banking institutions safely and not to legalize cannabis.
The main sponsors of the bill were backed by the entire financial services industry including major banks, credit companies, and their associates.
Credit Companies and Banking Institutions Unite
Though this unity— between credit firms and banks— to amend financial laws for the better is not historic; it marks a significant step because these two sectors are often considers rivals. This rivalry between banks and credit card unions is often caused by differing legislation interests but that doesn’t mean these two sectors are always at loggerheads.
For instance, they have, as a unit, pushed for financial law amendments such as the regulatory relief law and the data breach control. And now, they unite again to support the House of Representatives in pushing for another bill that will change the future of an entire industry and impact the overall economy thanks to the SAFE Banking Act.
The move to work together has also proven that these two counterparts can work together to drive significant changes.
Final Words
We’re all positive the SAFE Banking bill, set to proceed to senate will gunner a bipartisan vote. Its proposers are confident it has been revised in all aspects including wording to impress to leading Republican senators and protect marijuana businesses.
If the law is enacted, banks will no longer fear onboarding legal marijuana business and we will reduce cases of merchants storing hundreds of thousands in cash because no financial institutions wants to accept their money.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated merchant account provider in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.