2019 was an exciting year, when it comes to the world of CBD banking, and how CBD businesses can process transactions, store revenue, and utilize traditional banking systems in the United States. On Wednesday, September 25 2019, the House of Representatives passed the Secure and Fair Enforcement (SAFE) Banking Act. This bill is aimed at easing regulations around banking, specifically state-legal cannabis businesses. In short, it provides some positive insight and confidence, into how CBD companies can legally bank in the US.
What does this mean for the cannabis and CBD industry? The bill is the first time a body of Congress has approved pro-cannabis legislation and the passage of the bill would allow federally regulated United States banks to provide services to state-legal cannabis businesses. The SAFE Banking Act solely applies to the hemp and CBD industries as well as the cannabis industry.
Currently, banking in the CBD and cannabis industry is a challenge for many CBD businesses seeking loans, merchant systems, credit card processing systems, banks that will accept CBD companies on their records, as well as general confidence with their accounts in regards to safety and securing their money into a federally backed financial institution.
With all of this forward motion happening in the banking industry in regards to CBD and cannabis, we are hopeful that our industry will benefit from the protection of US banking regulations. In the mean-time, there is a growing number of CBD, and cannabis friendly merchant systems such as Square, that companies can use to process payments online.
At Source Extracts, we have full confidence in the financial institutions we work with, and maintain continuing education, around banking guidelines when it pertains to the CBD and cannabis industry. Source Extracts sources, produces, and distributes bulk CBD oil derivatives from and for companies just as dedicated to quality, transparent, and consistency as we are. Great CBD products start at the SOURCE. A copy of The SAFE Banking Act of 2019 is available here.