First Subcommittee Hearing on Banking Services for Cannabis-Related Industries
Last week, Congress held its first-ever hearing on the issue of cannabis banking, entitled “Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses.” The hearing, which took place before the Subcommittee on Consumer Protection and Financial Institutions, addressed a draft of the Secure and Fair Enforcement Banking Act, or SAFE Banking Act, introduced by Congressman Ed Perlmutter (D-Colo.).
The SAFE Banking Act would:
- Provide a safe harbor for financial institutions to legally provide services to cannabis-related industries in states where cannabis has been legalized in some form
- Allow legal businesses to access financial services in states where cannabis has been legalized
- Address a void in banking that faces cannabis-related businesses and increase the number of banks providing financial services to these businesses
- Help prevent tax evasion, fraud, and public safety issues
CohnReznick does not take a position on federal cannabis legalization but supports any efforts to enable access to banking through the SAFE Banking Act. Access to the regulated banking industry will increase financial transparency and auditability. This should be of significant benefit to investors, regulators, and taxing authorities.
This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
InsightTax Incentives for Cannabis CompaniesThe recent passage of the 2018 Farm Bill descheduled industrial hemp and its derivatives.
InsightImpact of Wayfair on the Cannabis IndustryOn June 21, 2018, the United States Supreme Court decided South Dakota v. Wayfair, Inc., 585 U.S. __ (2018).
InsightAgricultural Sales Tax Exemption and Medical MarijuanaMuch has been written about Section 280E of the Internal Revenue Code and how it impacts the cannabis industry. State and local tax issues, however, have received very little attention.
InsightConsiderations for Cannabis Companies and Investors Following Tax Court Decision on Harborside Health CenterLate last year, the Tax Court published its opinion in Patients Mutual Assistance Collective Corp. (d.b.a. Harborside Health Center) v. Commissioner, 151 T.C. 11 (2018).