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Cannabis Industry Gets Big Financial Boost To Expand In California
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Cannabis Industry Gets Big Financial Boost To Expand In California
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The SAFE Banking Act states that proceeds from legitimate cannabis businesses will not be considered illegal. It would direct federal regulators to craft rules for how they would supervise such banking activity.
Banks and credit unions have largely avoided serving cannabis firms because of the gap between federal and state laws. Cannabis is illegal under federal law, but three-dozen states have legalized medical or recreational use of the drug. Financial firms that work with a cannabis company, however, risk steep federal penalties, even in states that have legalized the drug.
The House-passed legislation has broad support in the banking industry, including from the American Bankers Association.