Why the Cannabis Industry Needs to Be Part of the SAFE Banking Act

Posted by Brian Sparks|August 20, 2020

If you want a perspective on how allowing regulated banking in the cannabis industry would be monumental, just ask Robert Hoban. A leading cannabis lawyer and policy advisor with Hoban Law Group, Hoban also is a contributor to Forbes.com on legal issues related to the cannabis industry.

In a recent Forbes.com article, Hoban writes: “Simply put, the U.S. needs the SAFE Banking Act, the global cannabis industry needs the SAFE Banking Act, and our post-COVID-19 economy needs the SAFE Banking Act. Without banks, state-compliant cannabis businesses can’t accept credit cards, acquire loans, set up deposit accounts, write checks, run payroll, or pay taxes. All this currently enables money laundering, presents a safety hazard, and prohibits the U.S. from keeping pace with nearly all of its neighbors in the Western Hemisphere in the new commercial global cannabis economy.”

Hoban continues: “In the uncertain times we find ourselves living through, it’s never been more apparent that we need government to recognize the economic value of the cannabis industry. The SAFE Banking Act is the first step. It provides that federal regulators shall not interfere in the actions of a depository institution dealing with state-legal cannabis businesses. It protects financial institutions that choose to do business with cannabis companies in legal states and provides clarity so that federal regulators cannot interfere with or punish financial institutions for working with legitimate cannabis-related businesses.”

Read the entire article here.