The SAFE Banking Act is expected to help cannabis businesses in the U.S. by providing legislation that details rules surrounding funds that are received from cannabis industry activities.
If the bill gets approved then the SAFE Banking Act would essentially help those cannabis businesses to be able to get loans and do other financial activities for their business.
Those who have been trying to navigate the grey area in the meantime, without that broad acceptance for cannabis business, have had a hard time.
It is money services that are one of the areas of the cannabis industry that still needs significant attention and improvement, the stigma and remaining criminalization on a federal level doesn't help things.
There are some banks that might do services with cannabis businesses and getting insurance or loans, but doing regular money business activities can be difficult if you are a cannabis entrepreneur.
It shouldn't be like that in places that have established their own markets but it is what thousands of cannabis business owners have had to endure over the years.
Now things might be changing though if the SAFE Banking Act gets a pass.
The changes would mean that state licensed cannabis business could engage in regular services and activities with financial institutions on a much larger scale than they are currently. These companies that need help are shut out of accessing small business loans and other financial services and it is going to help the industry greatly when things change on that front for them. Without those changes though they've still managed to create a multi-billion dollar market in the meantime.