The news: A federal legislative provision that would allow US banks to serve cannabis businesses has been excluded from an updated version of the 2022 National Defense Authorization Act (NDAA), per Banking Dive.
More on this: The provision is called the Secure and Fair Enforcement Banking Act (SAFE Banking Act) and was included in an NDAA version that passed the House in September, Insider previously reported. It would let banks offer services in states where cannabis is legal even as the drug remains illegal at the federal level.
The big takeaway: While the SAFE Banking Act’s exclusion from the NDAA is a short-term setback for cannabis banking, it’s not a death knell. Backers’ fervent support will likely lead lawmakers to make another push in the not-too-distant future.
Some companies have filled the void by working with commercial cannabis growers, producers, manufacturers, and dispensaries that need access to capital and financial services:
Acting now means that these companies are positioning themselves to make money within an industry that racked up $17.5 billion in sales during 2020 and is projected to be worth $100 billion in the US by 2030. They could gain a first-mover advantage in cannabis banking from fostering customer relationships now.
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