Recent years have seen a number of positive changes occur in favor of the cannabis industry. Once thought an unlikely outcome, states are now legalizing medical and recreational marijuana at a record pace. Of course, there are still plenty of setbacks. Due to cannabis still being illegal on a federal scale, there are countless complications that arise when it comes to financial matters. Thankfully, new legislation in the world of banking is creating the possibility of an easier future for everyone involved.
What Is the Safe Banking Act?
The Safe Banking Act was passed in 2019 by the U.S. House Committee on Financial Services. The aim with this was to make it less complicated for businesses in the marijuana industry to receive fair protection with financial and insurance matters. While it took a good amount of time to iron out many of the details, this act is a huge stride forward when it comes to enforcing a sensible level of protection. Banks and credit unions will feel less threatened to loan money when their assets are protected. Other benefits include:
- Conflict resolution between federal and local laws
- Options to protect equipment and other assets
- Protection for cultivators, growers, and more
A Brighter Tomorrow
By keeping an eye on the future of your industry, you can make huge changes to how you protect yourself and your company. With this act on the horizon and more states set to legalize marijuana, the road ahead will continue to get clearer.