According to Colorado Senator John Hickenlooper, there is a need to embrace the SAFE banking Act as it will support legal cannabis significantly. The passage of the SAFE Banking Act will pave the way for the cannabis entrepreneur’s access to traditional financial services.
The Colorado senator stated that the federal policies and regulations which refute banking services to state-licensed entrepreneurs encourage criminal activity.
Among the goals of marijuana legalization is that state-licensed businesses should be allowed banking services to support their financial needs. In addition, the senator stated that the current federal regulations state that banks are subject to penalties because of fraud and money laundering for servicing cannabis ventures. This has forced most licensed cannabis industries to work in a risky setting loaded with cash.
The cash-only system introduced is popular in the cannabis economy, a recipe for disaster. According to Hickenlooper, this policy means that banks will start banking by doing away with the cash system. However, operating in this system brings multiple adverse impacts, such as not being able to get loans.
Colorado, which supported the pending SAFE banking Act, stated that regulators would be stopped from penalizing banks that service cannabis businesses legally. These reforms will also greatly benefit the states that institute cannabis. The broad support from governors of the judiciary will hasten the passage of the legislation.