House Passes Cannabis Banking Bill

October 7, 2019

Reich & Tang (R&T), one of the nation’s leading liquidity specialists stands ready to offer a S.A.F.E compliant version of its Demand Deposit MarketplaceSM (DDM) Program to Banks looking to secure FDIC insurance for prospective customers legally operating in the cannabis industry within their state.
 
The House of Representatives recently voted to pass a bill that would allow banks to work with prospective customers legally operating in the marijuana industry within their state, however it still needs to pass the Senate. The bill aims to give clarification to banks and credit unions that wish to serve cannabis companies. Currently, financial institutions face legal problems because marijuana remains illegal on the federal level, even as more states legalize it.
 
“We have an expansive network of banks, operating both in the “medical use only” and the “medical and recreation use” states, explained Joseph Jerkovich, EVP and Chief Operating Officer at Reich & Tang. “We are closely monitoring the outcome of this bill and we’re prepared to service our Banks in this unique industry with innovative tools, flexibility and tailored insured deposit solutions.”