With the SAFE Banking Act failing to pass this past December, federal reforms nowhere on the horizon, inflationary pressures surging, a bear market decimating valuations, equity markets all but shutdown, and thriving illicit markets in many states – it turns out that the cannabis industry may not be recession-proof after all. Read the rest of the article written by Katrina Skinner.
Federal marijuana prohibition has prevented traditional insurance, banking and credit-card services from working with state-legal cannabis businesses, creating a dangerous overreliance on cash that has led to countless dispensary break-ins and robberies. Katrina Skinner, our general counsel and chief banking officer, explained how federal reform such as SAFE Banking doesn’t directly play into how the company strategizes for the future.
Calls are increasing among marijuana growers to stop licensing new cultivation businesses in more established recreational cannabis markets including Colorado, Michigan and Oregon. Alex Rubin, one of our regulatory analyst, said he sees the importance of stabilizing the market when there’s so much supply in Colorado when demand has dropped.