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states that have legalized medical has been legalized for medical or
or recreational uses of cannabis, adult use," said a spokesman for the
Increasing Revenue Quinnipiac reported. American Bankers Association.
for ISVs, ISOs More than 20 bills in Congress today "We have an entire industry of small
seek to rewrite or amend federal
businesses out there that simply can't
and Resellers cannabis laws. One bill – the Secure access the banking system," Aaron
and Fair Enforcement Banking Stetter, executive vice president for
Act, or SAFE Banking Act – was policy and political operations at the
introduced by a group of Democratic Independent Community Bankers
senators and would prohibit federal Association, wrote in an August
regulators from coming down on article published by ICBA.
banks and credit unions that accept
deposits from state-sanctioned According to FinCEN, just over
cannabis businesses. 400 banks and credit unions were
"actively" servicing cannabis
Another – the Strengthening businesses as of late March. While
the Tenth Amendment Through this number was up 20 percent from
Semi-integrated Healthcare
Solutions Solutions Entrusting States (STATES) Act – has 2017, it's a small share of the 16,000-
ECR All-in-one
Solutions broad bipartisan support in both plus federally regulated banks
the House and the Senate. That bill, and credit unions operating in the
among other things, would exempt country.
state-sanctioned and regulated
Improve Retention cannabis businesses from the Some of these institutions see a future
Controlled Substances Act, allow in cannabis and appear to be trying
those businesses to deposit funds in to establish long-term processing
Offer More Features federally insured banks and credit agreements with cannabis merchants
unions, and remove industrial hemp to forestall defections once federal
products from the list of products restrictions are lifted. "There is a
deemed controlled substances under quiet land grab going on, mostly by
Expand into Healthcare
federal law. big banks," Beebe said.
The STATES Act appears to have Workarounds are debit-focused
the caught the attention of President In the absence of federal legislative
Trump. "We're looking at it, but I and regulatory change, several
Contact Us! probably will end up supporting merchant services companies have
844-319-5635 that," Trump told reporters when
info@SoundPayments.com asked about the bill in June. developed workarounds. "The
SoundPayments.com opportunities in this market are
Meanwhile, Comptroller of the all over the place, because if these
® businesses can't transact they're not
Currency Joseph Otting said in going to be able to stay in business,"
October that he is "hopeful there is said Max Miller, president of
enough momentum" for legislation Paybotic, a Miami-based ISO that
giving banks the green light to service specializes in businesses selling
cannabis companies, according to a cannabis and related products.
report by Politico. The Comptroller's
office is the primary supervisor of Paybotic is one of a small but
several thousand national banks, growing number of ISOs offering
from small community banks to debit solutions that ride on ATM
nationwide behemoths like Bank of network rails. The company
America and JPMorgan Chase. also offers electronic check and
Banks eager to move automated clearing house (ACH)
solutions for cannabis businesses.
Several banking trade associations "No one type of offering serves all
openly support such as move. of these businesses," Miller said.
"We believe the time has come for While a debit solution may work
Congress and the regulatory agencies for retail dispensaries, it may not be
to provide greater clarity to banks a good fit for business-to-business
operating in states where cannabis transactions, he noted.
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