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Hashish Banking: State Treasurers Ask Congress to Embody SAFE Act in COVID-19 Aid Laws – Canna Regulation Weblog™


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On Wednesday, July 8, 2020, a bipartisan group of sixteen state treasurers, led by Oregon Treasurer Tobias Learn, despatched a letter to congressional leaders requesting that the subsequent piece of COVID-19 aid laws embrace the SAFE Banking Act.

The letter prominently cites each the well-known and new questions of safety that come into play when forcing so many to function on a purely money foundation:

This provision wouldn’t solely deal with new questions of safety created by the COVID-19 disaster, but additionally these attributable to the present battle between federal  and state hashish legal guidelines. The 28,000 hashish associated professional companies and their 243,700 staff, who already confronted important burdens earlier than the pandemic, are actually confronting harmful new obstacles as they try to handle the modified circumstances. To maintain staff, sufferers and customers secure, it’s important that we cut back using money by creating entry to monetary providers for these state-licensed companies.

These new obstacles embrace forcing hashish companies and customers to proceed partaking in all-cash transactions with out the choice of “no-contact exchanges” – which clearly offers trigger for concern given CDC and WHO steering that implies the coronavirus can dwell on surfaces for prolonged intervals of time. And, when contemplating what number of caregivers and customers would classify as high- or higher-risk, it turns into much more worrisome.

In addition they level to the steep financial downturn, highlighting the ironic truth that almost all of states have continued to allow hashish gross sales and classify cannabis-related companies as important, however preclude their skill to acquire federal aid funding:

As a result of battle with federal legislation, these companies are ineligible for SBA lending applications or worker retention tax       credit.  Passage of the SAFE Banking Act would permit these companies to hunt wanted capital from banks and credit score unions and supply lending choices for his or her staff through the financial restoration.

Treasurer Learn’s workplace issued an announcement concerning the letter: “With tens of millions of {dollars} in money transactions placing staff, sufferers, and customers in danger, it is important that Congress act swiftly to go this essential laws.”

We beforehand reported that the Home did go the SAFE Banking Act late final yr, nevertheless it has remained pending earlier than the Senate Banking Committee since then. Though some stay hopeful the standalone invoice will go before later, the state treasurers’ letter solely highlights the necessity for change now.


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