In an interview with PBC conference, Rodney Hood, a financial regulator and board member National Credit Union Administration (“NCUA”), said that the marijuana sector has a bright future once it is fully legalized and infrastructure is set in place. During the interview, Hood suggested ways to deal with federal regulations that have seen banking institutions backing out on working with marijuana businesses. Despite more states legalizing marijuana for recreational and medical use, the industry has not received backing from the financial services sector. This reluctance is due to the influence of federal prohibition on the sector. Aside from that, rural markets provide an opportunity for cannabis businesses. With urban centers usually considered as the prime target market, rural communities get overlooked. That could change if Congress passes reform legislation that protects banks that work with cannabis businesses from facing penalties as a result of financial regulations. The Secure and Fair Enforcement Banking Act, also referred to as SAFE Banking Act, is seen by many as a way to improve business efficiency in the cannabis industry with its intention of availing protected banking services.
CannabisNewsWire, 02/07/2022 04:20:00