Banking for the Cannabis Industry – It’s a Downer

Two men harvesting tall cannabis plantsOne of the fastest growing industries in the past ten years is also the most ironic: cannabis. Legal in many states yet still illegal on the federal level. What is a legal (on the state level) weed dealer to do? Put pressure on Biden, of course. According to Chris Roberts of MJBiz Daily, both sides of the aisle have been interested in seeing cannabis “descheduled” — that is either removed as a scheduled substance altogether or downgraded to lower level.

Currently, cannabis listed as a Schedule I substance under the Controlled Substances Act, meaning that it has a “high potential for abuse, no currently accepted medical use in treatment in the United States, and a lack of accepted safety for use under medical supervision.” Yet, there are many competing opinions with regard to how it can be used medically, from treating inflammation and pain to reducing the harsh side effects of chemotherapy.

“The nation’s biggest marijuana industry voices begrudgingly acknowledged on Monday what Capitol Hill insiders believed for weeks was inevitable: Joe Biden’s first two years in office will end without federal marijuana banking reform.” Chris Roberts, MJBiz

Roberts added, “The industry reached that conclusion after learning a must-pass omnibus spending package would not include the SAFE Banking Act – the bipartisan-supported measure banning federal regulators from punishing financial institutions that provide accounts to state-legal marijuana firms.”


The SAFE Banking Act is a banking regulation that would have prohibited federal banking regulators from penalizing depository institutions that provide banking services for cannabis-related businesses that are abiding by their state regulations. But in the meantime, “cannabis compliant” companies such as COVA are developing POS solutions for dispensaries.


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Here are the several documents related to the cannabis industry currently available on RealDealDocs:

Body And Mind Amends Seaside Dispensary Purchase Agreement

Mary Jane’s Cbd Dispensary , Inc. Exh 31 Rule 13A-14(A)/15D-14(A) Certification for MARY JANE’S CBD DISPENSARY , INC.  

Verano Announces The Opening Of Zen Leaf New Kensington, The Company’s 15 Th Affiliated Pennsylvania Dispensary And 117Th Location Nationwide   


Sources

Marijuana banking reform dead in Congress as industry stakeholders seethe

Department of Justice/Drug Fact Sheet

Can Cannabis Dispensaries Use Traditional Banks?


Image courtesy of Sire Printing