Treasury Secretary Steve Mnuchin testified during an appearance before House Financial Services Committee about the Financial Stability Oversight Council’s (FSOC) annual report. During his testimony, he addressed cannabis and banking saying, “We do want to find a solution to make sure that businesses that have large access to cash have a way to get them into a depository institution for it to be safe.”
He also said, “We are reviewing it with the intent not to take it down without a replacement.”
A copy of the clip can be watched here.
Robert Fireman, CEO of MariMed Inc, (MRMD) a firm which has established cannabis cultivation and dispensary facilities in 6 states and distributes branded precision dosed products in numerous states, voiced his support for government efforts to enable the cannabis industry to use traditional banking:
“Banks play a major role in all business. Marijuana is classified as a Schedule I drug under the federal drug control regulations has been a barrier for most banks to provide needed financial services to the cannabis industry. In many states, cannabis businesses cannot obtain banking accounts to make deposits or issue checks and wires for payables. Most banks refuse to provide even secured loans to own and develop cannabis facilities. Banks who have mortgages on commercial and industrial buildings consider it a default if these business owners lease any part of property to cannabis business. Currently, having to deal with lots of cash presents security issues that other businesses do not have. Conventional banking will be a great benefit to this emerging cannabis industry as it tries to become more mainstream in the 29 states that now have some form of legal cannabis.”
Article by Debra Borchardt
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