Banking access is a huge problem for cannabis businesses.
An Unprecedented Message
A state’s attorney general has big shoes to fill. He or she has to prosecute crimes against the state while complying with federal law. Now, the vast majority, 38 in all, have come out against current federal law and in support of the cannabis industry. What message are these top lawyers sending? They’re urging the federal government to allow enterprises in the cannabis industry access to the banking system. A little over two weeks before, 17 state treasurers made a similar plea.
Under the Obama administration, the federal government did make some modest moves to encourage marriage between cannabis companies and banks. But banks are skittish. Although state-legal cannabis businesses offer lucrative opportunities, banks are worried about running afoul of federal law and being sanctioned or losing their charter, wholly evaporating their business opportunities. Banks could even be prosecuted for violating money laundering laws.
So why did these attorneys make such a move? California Attorney General Xavier Becerra told NPR that, “Not incorporating an $8.3 billion industry into our banking system is hurting our public safety and economy.” Fortunately, there is a law working its way through Congress called The SAFE Banking Act. This would give state-sanctioned cannabis companies banking access. Besides 38 individual AGs, the National Association of Attorneys General is endorsing it.
A Better Way
Without access to the banking system, cannabis businesses deal in cash. This makes them the target of crime, which means they have to put in all kinds of safety measures and pay for them. This makes conducting business more difficult, too. Such enterprises can’t accept debit or credit cards, can’t make or receive electronic payments, can’t write checks, and the cash must be processed, stored, and delivered, which calls for armed guards and armored cars.
It also makes tracking such businesses and taxation burdensome. Rep. Ed Perlmutter (D-CO) and 173 other co-sponsors moved to overcome the problem, with the SAFE Banking Act. So far, the House Financial Services Committee advanced the bill, back in March. Now, the aforementioned groups and other organizations are supporting it.
Public Safety
It isn’t only state attorneys general and treasurers but the banking sector itself that’s in favor of the bill. The American Bankers Association wrote in a statement, “The commonsense bill provides much-needed clarity for banks in states where cannabis is legal.” A similar act is working its way through the Senate. 25 senators have signed on to that bill. While most supporters are confident it’ll pass through the House, the bill’s fate in the Senate remains uncertain.
Senator Mike Crapo (R-ID) is the chairman of the Senate Banking Committee. Idaho is one of the few states which hasn’t legalized or decriminalized. As a result, he may be less interested in pushing this piece of legislation. Some believe that framing it as a public safety issue may make it more pressing. Backers of this outlook believe more law and order and better tracking of legal cannabis cash and the tax opportunities that presents, may help convince law and order Republicans to get on board.
Ai Vacuum
Should such a banking law go through, it’ll invigorate the industry. And Ai Vacuum will be there to supply high-quality equipment and the best customer support. This is one of the most well-known providers of post-harvest equipment in the industry. Do you need to perform pesticide remediation, decarboxylation, or winterization? If so, pick up one of our jacketed glass reactors.
Our 20-liter is an excellent choice. Its glassware is among the best on the market. This is food-grade, high borosilicate glass 3.3. It resists heat, cold, and corrosion. The reactor has a wide temperature range, too. It goes from -110°F to 400°F. Multi-layer stirring blades optimize your results, while PTFE sealing components preserve the lifespan of the reactor, ensuring it’ll last.
Distillation and Solvent Reclamation
If you want to make rich, honey-colored distillate, purchase one of our short path kits. Our 10-liter is popular in the industry. Each glass piece is made of heavy-wall, high borosilicate glass 3.3. This is exceptional at resisting heat, cold, and corrosion. Moreover, a large vacuum jacket provides extremely efficient fractioning, while an increased head diameter means no chance of clogging. PTFE thermo inlet adapters and Viton gaskets mean the kit will hold up, even against the most corrosive applications.
For solvent reclamation, consider one of our rotary evaporators. Our 20-liter model is exceedingly common in the industry. It’s efficient, precise, and always delivers uniform results. One important feature is a specially designed motor and worm gear. This offers quiet, consistent, vibration-free rotation at speeds of 100 to 180 rpm. Another important feature is a digital water bath that goes from ambient temperature to 99°C (210°F). And the bath has a PID controller that’s so precise, it steps up the temperature at 0.1°C increments. Whatever your post-processing needs, turn to Ai Vacuum.
To learn more about the SAFE Banking Act, click here:
