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A group of state cannabis associations is asking Senate leaders to advance bipartisan cannabis banking legislation as soon as possible. The American Trade Association for Cannabis and Hemp (ATACH) alongside marijuana trade associations from 16 other states sent a letter to Senate Banking Committee chair Sherrod Brown and committee member Tim Scott emphasizing the need for immediate cannabis banking reform.
ATACH was joined by trade associations representing cannabis businesses from Hawaii, Arizona, Alaska, Alabama, Nevada, New York, New Jersey, Maryland, Illinois, California, Washington State, Ohio, Pennsylvania, Montana, Mississippi, District of Columbia and Missouri. These entities joined together to urge the committee to pass the SAFE Banking Act “without further delay.”
The SAFE Banking Act would protect financial institutions that serve state-legal cannabis businesses from legal reprisals by the federal government.
Although cannabis is now legal in dozens of states, federal law still classifies it as a Schedule I drug under the Controlled Substances Act. As a result, this makes it almost impossible for cannabis businesses to access financial or banking services because federal law forbids these institutions from serving businesses that are involved with federally controlled substances.
This has forced many cannabis businesses to operate on a cash-only basis, significantly increasing the risk of robberies and making it difficult for them to honor their tax obligations.
Industry stakeholders have been asking for cannabis banking legislation to finally allow them access to services such as bank accounts, cashless payments and financial aid.
The coalition of marijuana trade associations argued in their letter that the current status quo, which has denied cannabis businesses access to traditional financial services. is “untenable,” with dire safety and public health consequences. Operating on a cash-only basis makes cannabis businesses a prime target for violent robberies, the letter noted, adding that cannabis businesses in Oklahoma, Oregon, Michigan and Washington are already dealing with violent robberies.
Speaking in a recent press release, ATACH President Michael Bronstein said with every moment that Congress fails to act on cannabis banking, state legal businesses and their workers continue to suffer from armed robberies, break-ins and violent encounters that have even taken innocent lives.
Unfortunately, the recent letter came only a day after Committee chair Jerrod Brown reportedly said that his panel wouldn’t be holding any votes this week. This means that cannabis banking legislation likely will not pass during the summer session because once July draws to a close, senators will not reconvene until September.
When cannabis banking becomes a reality, a new spurt of growth in the marijuana industry could come, and that growth is also likely to lift ancillary enterprises such as Advanced Container Technologies Inc. (OTC: ACTX), whose niche is in supplying what cannabis companies need for their operations.
NOTE TO INVESTORS: The latest news and updates relating to Advanced Container Technologies Inc. (OTC: ACTX) are available in the company’s newsroom at https://cnw.fm/ACTX
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