Marijuana is considered a Schedule I substance by the US federal government, though it is
That's forced many otherwise law-abiding marijuana businesses to operate on an all-cash basis, putting the industry at risk for theft and fraud. While some financial institutions are starting to perform simple functions like opening checking accounts for marijuana businesses, it still remains difficult for many to receive loans, open lines of credit, and even get insurance and access to capital.
The SAFE Act, however, still has a ways to go before it becomes law. If the House Financial Services Committee votes to pass the bill, it will likely go to a wider House floor vote in May. After that, the bill would have to pass the Republican-controlled Senate, where it may face some opposition from the Senate Banking Committee Chairman, Idaho Republican Sen. Mike Crapo.
In that regard, the advantage still lies in Canada, where marijuana is federally legal and pot companies are free to tap capital markets like any other legal business. But that hasn't stopped the biggest US banks, including Citigroup, from strategizing around how to get into the industry. And some banks, like Goldman Sachs, have advised existing clients on deals with cannabis companies. .
Reading through the article, risks of moneylaundering seem a hard-to-control aspect. Other questions would even arise between public or private Companies' ownership, being a very sensitive industry - as far as I can see in the USA.
Welcome to the wild Wild West, this should be interesting. Sigh.
businessofpot 🤞🏻
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