Jefferson City — The U.S. Congress released its 1.7 trillion-dollar spending package, and cannabis advocates are disappointed after the Safe Banking Act was not included.
The Safe Banking Act ultimately removes barriers between marijuana companies and federal banks.
The bill would stop federal regulators' rights to punish financial institutions that provide accounts or services to marijuana companies.
“I think the biggest thing you see here is a lot of cannabis companies are going to struggle to raise equity or debt as they expand their businesses in the coming year,“ said John Mueller, the CEO of Greenlight Dispensaries.
Like all other companies in the industry, Greenlight is forced to operate as a cash-only business due to the marijuana being a schedule 1 drug under the Controlled Substance Act, which puts businesses in danger.
“It’s too much cash and we are putting people at risk by having more cash in the building than is surely necessary,” said Mueller.
According to Mueller, there is only a hand full of banks that extend services to marijuana companies, but they must pay a hefty price.
“My bank account costs $1,200 to $1,500 a month, whereas yours is free. That’s the material difference with being in our industry,” said Mueller.
Muller encourages people who want to break into the industry to call congress to get the bill passed for the future.
“It’s about calling your congressman and making it a priority and everybody’s voice is heard. There’s no negative side of that other than some people saying it supports cannabis when it’s making it safer for the state license organizations,” said Mueller.