Contributor: KC Scannell
While it seems to be more thriving than ever, there is still a lot of help needed for the cannabis industry to become fully operational. Sure, in states where legalization is approved, there is a litany of legit businesses that are currently enjoying an onslaught of much-deserved profit and success. Which is all well and good, but they still aren’t protected from the federal government, who still ignorantly views cannabis, and its various forms, as an illegal substance.
I can’t even begin to describe the level of frustration such a distinction creates in the cannabis community. It is even more appalling because, as everyone (and their mother) knows, politicians in this country are all about turning a profit. These Washington fat-cats in the House and Senate may want to portray themselves as caring citizens, elected to help the American people live better, safer lives – but that couldn’t be further from the truth.
Yes, the majority of Democratic politicians don’t share that same level of greed that their GOP counterparts put on display on a daily basis, but they can only do so much when it comes to voting. In short, it is going to take a lot of convincing before these Republicans finally see the light, and realize how wrong they have been for pushing against the legalization of marijuana all these years.
However, luckily for those involved directly in the cannabis industry, it appears as though those once immovable tides might actually be swaying in the direction of legalized marijuana, and the multitude of legit businesses who are trying their best to follow every single stipulation and regulation required. Strangely, we may have the Republican Senate Majority Leader, Mitch McConnell to thank for it.
Ugh. Even typing that sentence made me feel gross. But, as strange as it is to say, it is the truth.
McConnell is the main proponent in Washington D.C. that is pushing for the passing of the SAFE Banking Act. Which would, in turn, help protect legit, legalized cannabis companies from any sort of federal penalties or punishments – as the federal government still views marijuana as an “illegal drug”…for now. But it is clear to see that that sort of opinion is quickly becoming more and more outdated.
The creation of the SAFE Banking Act comes on the heels of multiple studies that show an increase in the amount of banks who have chosen to work with cannabis companies all over this great nation. Specifically, the numerical report of credit unions and banks who have wisely chosen to help cannabis companies has (again) grown in the third quarter of 2019.
Breaking that figure down to more digestible numbers, that means that at the end of June, 162 credit unions and a stellar 553 banks were on the books for financially assisting these state-approved marijuana companies. Those impressive numbers are up from the previous 140 credit unions and 493 banks that were seen from the quarter previous to this one. That sort of upward trend in the banking industry is unavoidably positive – and it has essentially forced the federal government to rethink their outdated, stubborn views on marijuana legalization, and the necessary banking help that these legal companies so desperately need for a plethora of different reasons.
In the past, negative stigmas against the cannabis industry were seen as “too much of a risk” for banks and credit unions to take on. However, as time has progressed, these companies have proven their worth time and time again – essentially, making it far less of a risk to these credit unions and banks. Thus, the number of financial establishments providing help to these hardworking cannabis companies has increased.
One of the more prominent lawmakers in the middle of this ordeal is Representative Ed Perlmutter from Colorado. This powerful Democrat, a sponsor of any and all pro-cannabis legislation, hasn’t minced words when it comes to his feelings about the importance of nationwide acceptance of marijuana.
Rep. Perlmutter has been quoted as saying, “While the SAFE Banking Act focuses on harmonizing federal and state banking law regarding serving legitimate cannabis businesses and their service providers, there are still several issues where the federal government could provide more clarity.”
Adding, “The Department of Treasury and its regulatory agencies should issue guidance on behalf of all federally licensed businesses engaging in, or considering engaging in, the legal cannabis trade, or hemp and CBD trade, with respect to their engagement in a legal business.”
He is absolutely right. The best way to win over the federal government when it comes to nationwide legalization of cannabis is to regulate and observe it just like any other industry in this country. Such pieces of legislation are specifically designed to calm the unnecessary worries that the conservatives in the federal government have wrongfully held onto for all these years.
But he is not the only one in the corner of viable, completely legitimate cannabis businesses in this regard. The Financial Crimes Enforcement Network (FinCEN) came forward with a detailed report about the current state of cannabis banking a couple months ago. Out of the nearly 70,000 SARS (which is a fancy name for Suspicious Activity Reports) for cannabis companies, they only find a small percentage of these businesses to have “one or more red flags.”
Which really could be said about any industry. But that already miniscule number could be even less in the future with the implementation of important federal (and state) regulations on the cannabis industry, as a whole. Also, if the banks are allowed to freely assist cannabis companies without fear of federal punishments or penalties, they would be more open to vetting these businesses more thoroughly – which would help them avoid any sort of “red flags” going forward. Again, this is all dependant on the government hopefully passing very important pieces of legislation, like the SAFE Banking Act, very soon.
Not only would the acceptance of marijuana in this country do a whole lot of good for all of the citizens who benefit from its medicinal properties, but it would help eliminate any of the black market scumbags who are currently traversing the “Wild West” of the sparsely regulated cannabis industry. These criminals are able to fly under the proverbial radar because there is barely any sort of federal involvement whatsoever.
Regardless of what has happened in the past, it appears as though this great nation of ours is finally starting to warm up to the idea of legalized cannabis. Yes, it is long overdue, but these few steps in the proper direction are incredibly encouraging. As I alluded to above, there is still a long way to go before we can adequately claim that the cannabis industry is faultless.
However, with the eventual implementation of such pieces of legislation like the SAFE Banking Act, and other bills of this nature, it truly is only a matter of time before cannabis is legalized (and regulated) from coast-to-coast – with absolutely zero fear or worry about any sort of federal punishments, penalties, or obstructions of any kind. But don’t tell that to the folks over at Fox News, they simply can’t handle such a truth.
To be fair, they can’t handle any truth.
