Tennessee, Virginia Lawmakers Push For Cannabis Reform, Congressional Researchers Highlight Perils Of Cash-Only Transactions & More

New Congressional Report Highlights Perils Of Cash-Only Transactions For Cannabis Industry

Licensed state-legal cannabis businesses are facing significant challenges, due the the lack of banking access, suggested a report published by the Congressional Research Service (CRS) on Tuesday.

“If cannabis businesses are unable to access traditional financial services, they may face higher borrowing costs and may be heavily reliant on cash transactions, making them a target for theft,” the researchers said, reported by Marijuana Moment.

The congressional researchers shed light on the distinctive financial challenges faced by the cannabis industry, proposing the Secure and Fair Enforcement Regulation (SAFER) Banking Act, as a potential solution. The legislation was approved by the Senate Banking Committee in September and now is pending a floor vote.

“Among other things, the bill would prevent regulators from penalizing banks solely for offering banking services to cannabis businesses operating in compliance with state law,” the report on Federal Reserve policy said. “It would also provide legal protection to the Fed and its employees in providing services, such as payment services, to banks serving cannabis businesses operating in compliance with state law and allow the Fed to accept loans to cannabis firms as collateral at the discount window.”

Palm Springs Puts Brakes On New Cannabis Stores: Moratorium Extended

Palm Springs City Council placed a temporary moratorium on new cannabis dispensary permits last year due to concerns about industry oversaturation. On Thursday, the council unanimously voted to extend it for four years. The local policymakers also agreed to cut retail taxes for marijuana sales in half.

The California city …

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