Lawmakers in California take banking matters into their own hands

The California Senate approved Bill SB-51 which will create state-chartered cannabis banks, as the need for banking in the industry is becoming a pressing issue.

It’s still unclear if the federal government will pass the SAFE Banking Act, even with all the signs pointing towards a positive outcome. The bill still doesn’t have sufficient support in either of the houses of Parliament.

Just a week ago, Promontory Interfinancial Network published a press release with the findings of their banking survey, according to which nearly 50% of all banking executives believe economic conditions for their bank will be the same a year from now, and over 80% support the idea of allowing banks to serve cannabis businesses.

Luckily for the people across the nation, the support for the federal banking regulation is growing daily. Banking associations from all 50 states implored Congress to pass a measure and settle the issue.

The National Association of State Treasurers also voiced their support for introducing banking into the cannabis industry.

The latest update regarding banking in the cannabis industry comes from lawmakers in California’s Senate, who passed a bill which will require the creation of state-chartered cannabis banks.

State-chartered cannabis banks

Banking in the cannabis industry is rapidly becoming a necessity. Just last year, the cannabis industry pumped around $4.7 billion USD in taxes collected into the federal budget.

Despite that, Governor Newsom’s new state budget plan cut cannabis tax revenue projections by $223 million earlier in the month. This could be due to a slow rollout of the retail sector.

cities in california
Credit: marijuanamoment.net

The conversation regarding banking in the cannabis industry has been going on for months now. Lawmakers in California already tried passing a bill similar to this last year, but they failed.

However, the bill that made it out of the Senate, also known as SB-51, will be the first significant banking bill if the State Assembly approves it and Gov. Newsom signs it.

This will effectively help cannabis businesses make a move from operations based mostly on cash. Neither VISA nor Mastercard allows transactions within the cannabis industry until a federal law allowing it is passed in America.

“As policymakers, we have a duty to further the will of the voters while protecting the public safety of our constituents,” California’s Senate Majority Leader Robert Hertzberg said.

The banking conundrum seems to be finally coming to an end as the cannabis industry is going through its growing pains, however – nothing is final yet. The SB-51 still has to go through 2 legislative bodies before going into action.

The post Lawmakers in California take banking matters into their own hands appeared first on Greencamp.

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