PayPal has historically been against allowing cannabis businesses to utilize its service, but that’s all changing now as they became one of the 20 groups registered to lobby on behalf of the SAFE Banking Act.
In case you haven’t heard, the Secure and Fair Enforcement (SAFE) Banking Act has been a hot topic of discussion lately. It would finally make it legal for big banks to take on properly licensed cannabis businesses as clients. If passed, banks will be protected from federal prosecution and industry professionals would be able to open accounts, raise credit, and more. Now, after years of shutting down accounts belonging to cannabis companies, online payment processor PayPal is finally on board.
The fact that a company as large as PayPal is not only supporting the act, but actually lobbying on its behalf, has the cannabis industry abuzz. This implies that cannabis is becoming so mainstream that it will likely be legalized soon. The total market value is on track to surpassing both big tobacco and liquor in the next 10 years.
PayPal’s support is also attracting the attention of other important players in the financial industry. In addition to big banks, a number of credit unions and labor unions from multiple states are lobbying for the SAFE act as well. Naturally, the list of lobbiers also includes multiple cannabis advocacy groups.
The bill is sponsored by a bipartisan group of 22 senators, plus 162 co-sponsors in the House. In March, the bill was approved by the House Financial Services committee and now it has to clear the House, where experts predict it will easily pass. This may put pressure on the Senate to make a decision on the matter.
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