Mastercard’s recent decision to prohibit the use of its debit cards at cannabis dispensaries highlights the challenges facing the legal marijuana industry. While the SAFE Banking Act would protect banks that work with cannabis businesses, it would not address the underlying issue of marijuana’s federal illegality which was Mastercard’s stated reason for the policy change. Advocates argue that comprehensive federal cannabis reform through decriminalization and legalization is ultimately needed to resolve these financial and banking issues plaguing the legal marijuana industry. Mastercard’s move demonstrates that piecemeal reforms are insufficient and that full federal decriminalization is the only sustainable solution.
I hope in my lifetime we will see federal decriminalization. Enough already!
The SAFE banking act that was supposed to be voted on the senate floor this summer session would help transition into a free market for investment in cannabis. It’s been pushed till after the August recess, but apparently it has support on both sides (aside from amendments some politicians are trying to throw in).
If passed it would allow banks and other investment opportunities to invest in cannabis businesses, which would likely motivate Mastercard to allow purchases.