Federal law could soon change so that local marijuana businesses can use banking services.
Because cannabis is still illegal under Federal law, most banks are unwilling to let Michigan’s marijuana businesses use bank services. Daniel Paul, spokesman for local retailer NOBO in Benton Harbor, says that’s a problem.
“We run in a business that we can’t have access to all of the channels of the financial marketplace. So as retail stores, we can’t take credit cards. We don’t do well with debit cards. We’re hamstrung. So it’s an all-cash business.”
Last week, the U.S. Senate Banking Committee approved S. 2860, the SAFER Act, that would allow banks and other financial institutions to do business with legitimate cannabis dealers without fear of breaking the law. Paul says that’s good news.
“I think we’re getting closer to it, but we’re all, again, always very concerned about really, really, will it go forward.”
Those in favor of the change say current law stifles the growth of state-authorized marijuana businesses and forces them to operate exclusively in cash, raising concerns about public safety and tax collection compliance. The bill must still be considered by the full Senate, the House, and be signed by the president.
