Even so, federal prohibition of marijuana continues to make it difficult for cannabis companies to get the funding they need to open up and flourish.

Banking reform is the missing piece in this scenario.

Banking Reform Is Overdue

Like all businesses, marijuana companies need certain tools and services in order to operate legally and responsibly. The banking sector can play a major role in this.

Here’s how banking reform would help cannabis businesses:

1. Gained Access to Needed Capital

One of the biggest challenges cannabis companies face is access to capital for services that will advance their business, such as effective cannabis marketing.

These businesses could benefit from lines of credit, business loans, and other financial tool that are essential for success in other industries. Furthermore, access to the banking sector would legitimize the cannabis industry and stimulate economic growth.

2. More Job Creation

Banking reform would allow cannabis companies to expand operations and, in turn, create more job opportunities. Especially in areas that have been disproportionately affected by the war on drugs.

Creating more jobs in the cannabis would also have a ripple effect on other related industries such as retail, agriculture, and transportation.

3. Secure Transactions

Obviously, having to deal with purely cash-based in problematic. Security issues put business owners, employees, and customers at greater risk and jeopardize their safety.

Conversely, using banking services for larger transactions decreases this risk and makes the industry safer for everyone.

4. A Hit to the Illicit Market

Another hurdle the cannabis industry must clear is the absence transparency and accountability. The illicit market thrives on this absence.  In allowing banking services, regulators can ensure the enhancement of both of these.

Since banks are well-trained in monitoring transactions and due diligence, they can help prevent tax evasion, money laundering, or other illegal activities connected with the illicit market.

5. Safety for Consumers

Since legal cannabis companies are subject to regulations that protect customers, integrating banking services will further facilitate compliance with state regulations. This means that customers will not be exposed to unregulated and untested products that could prove to be unsafe.

6. Increased Research and Development

For a long time, R&D in the cannabis industry was limited to a small crop of federally grown and regulated weed. And it was limited, to say the least.

By enabling cannabis companies with banking services, they can invest in research and development to drive innovation in products and services. The end result? Increased efficacy, improved products, and overall acceptance of marijuana in the medical and wellness industries.

7. Enhanced Legitimacy

As mentioned earlier, regulatory compliance is a key component of the cannabis industry. It’s also necessary for its legitimacy.

By working in tandem with regulatory agencies, banking institutions ensure that businesses adhere to these laws. All of this encourages responsible practices and promotes legitimacy.

8. Ease in Tax Collection

One of the biggest reasons communities opt for cannabis companies in their jurisdictions is that these markets generate significant tax revenue for governments.

Banking services ensure more efficient tax collection to verify that this revenue is directed to education, infrastructure, and other public services.

Helping the Cannabis Industry

It is clear that banking reform could go the distance in helping cannabis companies to thrive and grow.

In the meantime, if you have a cannabis business that isn’t getting the attention it needs, contact us today. As cannabis marketing and public relations experts, we can put your company in the spotlight.

It’s time to get noticed.

The post Banking Reform Is Crucial to Cannabis Industry Success appeared first on GROW Cannabis Marketing.

We could also say that more than a few Americans are doing a fine job of that all by themselves. But that’s a topic for another time.

At any rate, the Secure and Fair Enforcement (SAFE) Banking Act is a bill that was six years in the making. It was endorsed by 50 state banking associations and the National Association of State Treasurers, as well as the top financial regulators of 25 states. (If you’re keeping track, that’s HALF the states.)

Plus, a majority of state attorneys general and bipartisan governors of 20 states also endorsed it.

That might be why 291 Democrats and 91 Republicans in the House came together in bipartisan agreement to pass it last week. And by a landslide.

Yes, Bipartisan Agreement!

We could use a lot more of that.

And if the Act passes in the more conservative Senate, it will be easier for marijuana companies to open checking accounts and get business loans.

Essentially, this juicy piece of legislation would protect banks and other financial institutions that service state-legal marijuana businesses from being penalized by federal regulators.

Plus, the entire market will be safer since companies forced to operate on a cash-only basis won’t have to keep stock piles of cash at their place of business.

So this feels like a good thing. And as we mentioned in our most previous post, that’s how (for the most part) we see it.

But there are those who disagree. And they’re allowed. Afterall, this is America.

So they’re certainly entitled to believe that these esteemed members of Congress have endorsed a bill that would “help legitimize a business that’s destroying and endangering lives.”

And it’s okay if prohibitionists oppose the legislation because they feel the SAFE Banking Act is a gateway (if you will) to federally legalizing marijuana.

In the land of the free, it’s totally kosher to Tweet that in states where pot is allowed, there are more arrests, hospital visits, suicides, crime, DUIs, and work-related problems. DESPITE the fact that research says the opposite.

Apparently, free speech allows for fake news. And speaking of fake news…

Enter Tucker Carlson

Earlier this week, Carlson dedicated part of his show to demonstrate just how crooked these lawmakers are. According to him, this act is an attempt to make the American population indifferent to the many shortcomings of Congress.

The man with two last names believes that a bill aimed at protecting banks who service marijuana businesses will invariably lead to every American becoming a a hardcore stoner incapable of publicly scrutinizing what’s happening in the government.

Pretty crafty of them, huh? It’s a truly brilliant and diabolical plan!

It’s all too clear that Congress is dropping the ball on issues like immigration and repairing the infrastructure. We can’t have that. SOOOOO, they decided to come together on this banking issue so that all Americans can just get high instead. They’ll be so busy singing Kumbaya, they won’t notice .

“When you mismanage the country this badly, you want the people to be so out of it they don’t respond,” he said. “That is really true. They want you to be dumb.” How ironic, given he’s one of the most well-known pundits for a network that bases its success largely on this sort of thinking.

It’ll be interesting to see what his new theory is should the Senate not pass it. But honestly, we won’t be watching his show.

The SAFE Banking Act Is a Sign of Progress

As far as we’re concerned, the SAFE Banking Act is a move in the right direction.

Whether it passes in the Senate remains to be seen. But at least there are some Republican members in the House who are opening their eyes to the many benefits of cannabis.

We can only hope that others eventually awaken.

In the meantime, keep checking back with our blog to stay up-to-date on the latest in cannabis industry news.

The post Is the SAFE Banking Act Conspiring to Make Americans Stupid? appeared first on GROW Cannabis Marketing.

No?

Well, if you’re wondering, just ask the owners of dispensaries who must routinely engage in this activity because banks won’t work with them for fear of repercussions.

Hence the Safe and Fair Enforcement Banking Act – i.e. the SAFE Banking Act.

Filed last Thursday and led by Reps. Ed Perlmutter (D-CO), Denny Heck (D-WA), Steve Stivers (R-O) and Warren Davidson (R-OH), this bipartisan bill aims to protect financial institutions from being penalized by federal regulators for servicing marijuana-related businesses.

The bill was initially introduced in 2017, but didn’t garner legislation. So Perlmutter decided it was high time to reintroduce the bill so that cannabis businesses can at long last access the banking system.

“Congress needs to act to reduce risks for employees, businesses & communities across the country,” he says.

And he’s right.

The Current Challenges

Medical marijuana is legal in most states in the U.S. Even so, its status as a dangerous Schedule 1 drug under the Controlled Substances Act makes it illegal under federal law.

Thus, in the (decidedly cloudy) eyes of the federal government, selling marijuana is at par with dealing heroin or other dangerous narcotics.

Banks that step up to service legal cannabis operators are required to file a suspicious activity report for every transaction made with the business. And these rules stretch out to every company the marijuana operators interacts with – creating mountains of red tape and mounting expenses that are simply too much of a pain in the ass for most banks.

And the banks that ARE willing to help them out have to recoup all those costs by applying exorbitant fees. Plus, they’re still putting themselves at serious risk of criminal prosecution.

On what charges, you ask?  Aiding and abetting a federal crime and money laundering.

As a result, many commercial operators are forced to conduct most business with cash. Not only does this stir serious security concerns, but also creates a lack of funding to scale these businesses.

High-Fiving Our Neighbors to the North

Along with the mess above, these banking restrictions mean that cannabis firms can’t list on NYSE or NASDAQ until federal prohibition ends.

So they’re looking north to the Canadian Securities Exchange.

In other words, this arcane act of prohibition is setting up Canadian investors to get rich from the success of the U.S. cannabis market. In fact, finance firms there are already setting up options contracts so they can buy shares in cannabis firms once prohibition ends here.

Do marijuana opponents in D.C. really want to keep squelching growth of one of the fastest-growing industries in the U.S. – subsequently handing over control of that sector to our neighbors to the north?

That seems unlikely. But without sensible banking laws in place, that’s exactly what’s going to keep happening.

The SAFE Banking Act Makes Perfect Sense

Even though the prior version of the SAFE Banking Act didn’t advance to votes in the last Congress, folks are optimistic about its prospects this time.

And it truly is bipartisan. Somewhat, at least.

Of the 108 members who have signed onto the bill as initial cosponsors, nine of them are Republicans.

If the bill passes legislation, proceeds from transactions conducted by marijuana companies would no longer be considered the result of unlawful activity.

“If Congress fails to act, we are discouraging responsible, regulated markets and allowing a serious public safety threat to go unaddressed,” says Heck. In last month’s hearing before a House financial subcommittee, he added that the body has the power “to prevent murders and armed robberies,” referring to the dangers these businesses face being forced to operate on a cash-only basis.

Furthermore, it’s time to look at the civil liberties issue of deeming cannabis business owners as having certain reputational risks that other businesses don’t. Because the reality is, every small business face challenges.

And barring legally recognized small businesses from financial institutions available to every other business is a threat to the liberty and freedom upon which the country was supposedly founded.

It feels like a big step backward.

Improving Transparency and Public Safety

In a nutshell, that’s what the SAFE Banking Act really aims to do.

It’s not a call out for everyone to condone marijuana businesses. It’s simply a request to create an auditable trail, while keeping neighborhoods safe.

And it’s a request we hope Congress will honor.

In the mean time, if you’re a cannabis business owner, decrease the challenges of running your business by ensuring your marketing strategy is up to snuff. Contact us today to see how we can help.

The post The SAFE Banking Act Offers New Hope to Cannabis Businesses appeared first on GROW Cannabis Marketing.