The U.S. House of Representatives passed the SAFE Banking Act this week.
Even though 47 states have legalized some form of medical or recreational cannabis, banks have steered clear from the industry. Many fear federal money laundering charges because marijuana is still a schedule 1 substance at the federal level. As a result, cannabis businesses in the U.S. operate as a cash only business.
The SAFE Banking bill prohibits federal banking regulators from penalizing a bank for providing services to a legitimate cannabis related business. This would allow customers to be able to use debit and credit cards instead of cash.
The bill now moves to the Senate where its future is unknown.
