Proposed regulations regarding marijuana banking and cryptocurrency oversight could potentially be consolidated into a unified legislative proposal. Discussions within the U.S. Congress suggest the integration of the “Secure and Fair Enforcement Regulation (SAFER) Banking Act,” which focuses on cannabis-related financial services, and a stablecoin regulation initiative into a single bill, although the final draft of the legislation has not yet been completed.
Senate Majority Leader Chuck Schumer has expressed his intention to advance legislation aimed at ensuring the security of cannabis banking operations in the coming “weeks and months.” The SAFER Banking Act, which has been pending Senate action since its approval by the Senate Committee on Banking, Housing and Urban Affairs in September 2023, may have significant implications for various multistate operators and cannabis exchange-traded funds (ETFs).
Despite the legalization of marijuana in numerous states across the country, financial institutions continue to refrain from engaging with cannabis businesses due to the substance’s federal illegality. This predicament forces legitimate cannabis enterprises to grapple with the challenge of managing their finances predominantly in cash, as traditional payment methods are largely inaccessible to them.
While the U.S. House of Representatives has already passed a bipartisan bill facilitating banking services for cannabis companies, the Senate has yet to vote on its corresponding version. However, there is a possibility that such a vote may occur within the current year, potentially paving the way for enhanced financial services within the cannabis industry.
In a noteworthy development in August 2023, U.S. health authorities recommended a relaxation of restrictions on cannabis, proposing its reclassification as a Schedule III drug under the Controlled Substances Act, as opposed to its current designation as a Schedule I substance. This reclassification would signify a reduced perceived risk and could potentially enable legal acquisition of cannabis products through medical prescriptions.
The burgeoning cannabis sector’s economic significance is underscored by the milestone achievement of the business-to-business (B2B) cannabis platform LeafLink, surpassing $1 billion in transaction volume in September 2022 through its innovative payment solutions, with further growth anticipated in the future.