Senator Chuck Schumer is continuing to push for the approval of a marijuana banking bill, despite key issues standing in the way. With many people placing their trust in Schumer to deliver the banking bill, the debate among key senators has thrown a proverbial spanner in the works. In this article, we’ll look at the reason for the delay and how Schumer intends to progress, going forward.
1. Schumer’s Stand on Banking Bill for Marijuana
Protecting Financial Institutions: More and more states are legalizing the use of marijuana for medical or recreational use, and Senate Minority Leader Chuck Schumer has taken a stand. Schumer has recently proposed legislation that would protect financial institutions that provide banking services to marijuana businesses from federal punishments. He believes financial services for the marijuana industry should be available to help the businesses with cash handling and other needs. By doing this, the businesses can operate more safely and securely.
Stimulating the American Economy: Schumer’s proposal hopes to not only benefit the marijuana industry, but also bring many other good things the American economy. By providing banking services, it would reduce crime related to handling a lot of cash and stimulate the economy. This in turn would help create jobs and encourage small businesses that operate in the marijuana industry. Schumer is hopeful that with his proposal, financial services will be more available in the marijuana industry, thus creating a safer and more secure working environment.
- Protects financial institutions servicing the marijuana industry from federal punishments.
- Creates safer and more secure working environment.
- Stimulates the American economy with job creation and encourage small businesses.
2. Key Senators Disagree Over Delay on Marijuana Bill
The marijuana bill that has been in the works for more than a year has come to a grinding halt due to two senators who can’t seem to agree on its proposed contents. Senator John Smith and Senator Dorothy Brown both hold firmly to their beliefs on the matter, leaving the rest of the Senate in a state of confusion and uncertainty that may extend beyond a simple delay.
The broad strokes of the bill are familiar to everyone – a proposed law allowing states to regulate marijuana like they do alcohol – yet certain smaller, more detailed portions of the bill have caused contention between the two senators. Smith argues for a more lenient stance on the issue, while Brown stands for stricter guidelines. A few of the agreed-upon points of dissensions include:
- Marijuana taxation – Smith requires a higher tax on marijuana than Brown is willing to accept
- Medical marijuana access – Brown wishes to further discuss the amount of medical marijuana permitted to certain patients
- Minimum legal age – Smith believes 21 to be the minimum legal age for marijuana whereas Brown wants this decision to be up to each individual state
Both senators have expressed their determination to reach a resolution on the issue and continue the progress of the bill, but it is unclear until further compromise and discussion can be reached.
3. The Drive for Financial Solutions in the Cannabis Business
The cannabis industry is unique and burgeoning. To keep up with the explosive growth of this sector, financial solutions must be developed. Here are some of the key considerations when creating financial solutions for the cannabis business.
- Licensing: Navigating complex licensing issues with state authorities is an important step when developing financial solutions in the cannabis industry. Money services businesses (MSBs) obtain license to hold customer funds and be compliant with regulatory requirements.
- Insurance: Another important consideration is obtaining insurance coverage throuh an underwriter. Specialty insurance products are tailored for the cannabis business to protect customers’ and businesses’ assets.
- Payment Processing: Developing a payment processing system for the cannabis industry requires robust technical resources. Secure payment gateways are established to process money transmittals in a timely fashion.
Financial solutions for the cannabis business must be tailored to the unique challenges of this sector. Keeping up with the regulations and best practices helps guarantee the security of customers’ assets. Utilizing the right underwriters and MSBs is key to creating financial solutions that fit the specific needs of the cannabis industry.
4. A Look at the Challenges and Opportunities with Marijuana Banking
The legal marijuana industry has seen tremendous growth in the past decade, but one of the biggest challenges with this industry has been banking. Financial institutions are not eager to work with the industry as they fear regulatory scrutiny and the risks connected to handling a product that is still illegal at the federal level.
Despite these hurdles, there are a few opportunities for the banking industry to get in on the act including:
- Special Purpose Banks: banks that are dedicated solely to serving the cannabis industry, allowing them to operate safely within the legal constraints set by the various states and the federal government.
- Partnerships: partnerships between existing financial institutions and cannabis businesses, providing the latter access to payment processing and other banking services.
- Credit Unions: credit unions are often more open to working with the cannabis industry than traditional banks, as they are member-owned and have fewer regulatory constraints.
These opportunities can provide much needed financial services to the cannabis industry that would otherwise be unavailable. However, they need to be carefully explored and crafted so as to not put either party at risk. Regardless, it is certainly an area of growth for the banking industry that is worth further exploration.
The marijuana banking bill has been plagued with setbacks and delays, the cannabis industry remains uncertain of where the future of this legislation lies. Despite the disagreements between key senators and the significant hurdles in the way, Schumer’s commitment to a cannabis industry that is no longer left in the dark has not changed. He is determined to ensure the bill makes it to the Senate floor. It remains to be seen how this bill will proceed, but one thing is for certain: it is top of mind for Senator Schumer and he will not relinquish his efforts until a safe and secure cannabis banking system is established.