The domestic marijuana industry is big business, but it isn’t yet federally legal. Due to these constraints, businesses within the space do not have access to the same institutional services as typical companies have. For example, they have limited access to banking services and raising capital. This obstacle pushes marijuana firms into less transparent and safe areas to meet their financial needs.
Recently, Democratic congressman Ed Perlmutter of Colorado has made yet another move in his push toward the normalization of cannabis-related businesses. This time, he filed the marijuana banking reform amendment into the broader America COMPETES Act, which is involved in tech and innovation in manufacturing.
According to Marijuana Market’s press release, the dedicated lawmaker has committed to “enacting the SAFE [Secure and Fair Enforcement] Banking Act] before retiring from congress.”
Perlmutter has moved the amendment to the new and larger scale bill from a formerly unsuccessful attachment to the National Defense Authorization Act (NDAA). He has pledged to “pursue every possible avenue to get SAFE Banking over the finish line and signed into law.”
Increasing media buzz on the issue has had many investors betting on full legalization in the U.S. when buying domestic and Canadian cannabis stocks.
For marijuana companies, this is obviously welcome news. The well-established domestic cannabis market is legal in 18 states and the District of Columbia, although several hurdles still linger for the industry, preventing it from fully getting off the ground.
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