The removal of the SAFE Act from the defense bill is not the end of the road, but rather another indication of the steep climb to federal cannabis legalization.
The majority of cannabis advocates and supporters in the United States were let down by the Senate’s decision to pull out the SAFE ACT from the defense bill last month. Now that the shock of the removal has abated, these groups are rallying together to look for the next way forward. Lawmakers have started work on presenting a singular bill that encompasses the benefits the SAFE ACT could bring to the country.
The removal may happened for a reason, because in the weeks after this disappointment, new and better opportunities have been presenting themselves.
A Step Backward
From the first day, the SAFE Act bill was introduced to the legislature some years ago, passing the bill has always turned out to be a roller coaster journey. The result over the years has been a return to the starting point. Advocates and lawmakers held out hope that last year could be the year of federal cannabis reforms, only for the senate to pull the measure out at the last minute.
Many believe that this bill closes the gap between multistage operators and some small-scale cannabis entrepreneurs who have been unable to obtain private equity. They also think that small cannabis businesses would be allowed to make more profits if the playground were leveled with the SAFE ACT bill. However, the majority of the Senate lawmakers have refused to see the light or accept the benefits vividly written in the bill, claiming the language shows a different outcome.
The reason the Senate cited for striking out the measure from the defense bill is that the measure does little to stamp down on crimes but leans in favor of the MSOs. For a bill that the House had previously passed, the Senate’s reason seems a bit weird. Anyway, it’s the new year. With a new year comes new opportunities and new congressional sessions. Advocates are linking up and working together to have a fresh go at it in Congress. The objective for 2022 is to create a more equitable bill that not only leans towards MSOs but also enhances the safety of communities around the country.
Access to Commercial Lending
Federal cannabis reforms have been a long time coming. Its absence has put a strain on legal cannabis markets and has hindered small businesses from benefiting from an excellent financial aid program. Unlike the cannabis industry, non-cannabis sectors have access to commercial lending and equity funds. The SAFE Act would address these issues. The cannabis business will be able to be served by traditional financial institutions.
As it stands, many black-owned marijuana businesses in disadvantaged communities face the brunt of being unable to access funds. The Safe Act will offer these up-and-coming businesses access to private equity funding. However, multiple service operators will be among the first to be considered.
The Future of Cannabis Banking
The approval of the SAFE Act bill does not imply that cannabis has been decriminalized. The drug would still be federally prohibited. The reform may quicken the process of decriminalization in other non-legal states. As soon as cannabis banking reform is passed, banks will be able to work with legal cannabis businesses without fearing a federal backlash.
Currently, the…
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