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SAFE Banking Act comes to a halt; Act will protect banks doing business with cannabis businesses

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  • Staff Report 

Equity entrepreneurs in the cannabis industry in New York and New Jersey are pushing for Senator Schumer to pass a bill called the SAFE Banking Act.

cannabis shop impacted by the safe banking act

This bill would let banks work with licensed cannabis businesses without worrying about legal ramifications.

According to the Times Union, the United States Cannabis Council sent a letter on Friday stating that the Act could provide those running a cannabis business access to banking services.

They have been denied these services before now.

Finger Lakes Partners (Billboard)

Many people breaking into the cannabis industry are minorities, and they’re being denied the basic banking access their businesses need.

The letter states that the blocking of essential banking services is not helping social equity programs. Many of these businesses are forced to operate on an all cash basis.

One person stated that the SAFE Banking Act would allow him to properly do payroll, use credit and debit card merchants, and open the door for minority business owners to have equal access to the same institutions and services.

The SAFE Banking Act has been in circulation since 2013

The bill has passed the House multiple times since 2013.

The National Organization for the Reform of Marijuana Laws and the National Association for the Advancement of Colored People have been major supporting organizations since the start.

Marijuana has been legalized by many states, but the issue with banking lies with the fact the banks are under federal jurisdiction.

This means that banks cannot legally do business with marijuana businesses because they are run federally, not by the state. Marijuana is still illegal under federal law.

If Schumer brings the bill to the floor, it may pass the Senate.

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Categories: New York StateNews