A Coalition for Change
In recent times, a remarkable bipartisan stride has emerged – the proposed expansion of the marijuana banking bill. This comes with an optimistic underpinning: ensuring that cannabis businesses have unrestricted access to the financial services they need, including listings on principal U.S. stock exchanges.
Advocating for Inclusion
A coalition dubbed ‘SAFE Banking for Equity’ has actively engaged the Senate Banking Committee leadership, showing appreciation for the urgency the panel has shown. The focus? Addressing financial hindrances plaguing the cannabis industry. Among the influential entities in the coalition are the California Minority Alliance, Minorities for Medical Marijuana, Women Grow, and National Hispanic Cannabis Council.
Aiming for Broad Reformation
These groups underscore the need for significant amendment to the standalone Secure and Fair Enforcement (SAFE) Banking Act. The current act, though a noteworthy stride, only protects banks engaged with state-licensed marijuana businesses and select depository institutions from federal penalties.
A Broader Safety Net: More Than Just Banks
The coalition is championing for more than just banks. Their goal? Industry access to all regulated financial institutions and services. The sweeping range includes depository services, lenders, debt and equity financing, capital markets, investment services, insurance, broker dealers, fiduciaries, and credit card and payment processing.
The Cost of Financial Limitations
“Equal access to financial institutions and resources is paramount for economic growth,” states their compelling letter. The concern remains that without broader access to these financial resources, many entrepreneurs may lack the funding needed to launch or grow their businesses.
Empowering Small Marijuana Businesses
By forcing cannabis industry operators to compete with illicit markets, including those supported by Chinese investors, without financial support is akin to fighting with hands tied. The coalition emphasizes the negative repercussions: potential dominance by criminal enterprises that forgo regulatory standards, child safety measures, and taxes, and ultimately fail to reinvest in their communities.
Access to U.S. Senior Exchanges
Granting small marijuana businesses access to U.S. senior exchanges can markedly increase their valuations, reducing the equity entrepreneurs need to give up to secure the same investment. “Maintaining equity is critical for social equity license holders who are required to maintain majority ownership of their company,” their letter underscores.
A Future Step: The Carter-Reschenthaler Bill
Last Congress, Reps. Troy Carter (D-LA) and Guy Reschenthaler (R-PA) proposed a bill that would have permitted cannabis businesses to list on national stock exchanges and access other vital financial services. Unfortunately, it didn’t progress. Now, the call is louder and more urgent than ever, demanding an equitable and diverse future for the cannabis industry.
