The American legislation has been busy dealing with partisan bickering regarding cannabis for the better part of 100 years. In this time, we have seen the cannabis industry generationally surge without a clear legal answer from the US Federal government.
While the sale of goods and services is nothing new, tracking the information that derives from these high-risk markets and the transactions that comprise them is imperative to ensure a functionally secure financial network.
So, a question becomes very apparent when looking at the growth of the American Cannabis industry and the lack of legislation will by the American Congress:
When can we expect legislation that helps simplify the current cannabis economy in the US?
With a staunchly divided legislative branch, no sworn Attorney General, and entering the last year of the current Presidential term, there is but a sliver of hope for new laws that help clarify the current cannabis economy.
Banking for the industry has long been the major challenge for cannabis economic progress. Because of the role of the federal government in creating new cash, the distribution of existing cash in the US economy has to be closely regulated. Cannabis is one of the few large domestic industries in which the use of US tender is illegal. Because of this, banks cannot accept revenue generated from merchants who service the industry.
With this absence of service, merchants resort to nefarious methods to increase revenue while protecting existing marketshare. From dead dropping cash-laden duffle bags, to hiring private armed guards who move cash 24/7 around urban cities, this lack of legislation has only increased risk within the cannabis industry.
There is no short term fix to this problem until the federal government comes to an agreement on how to legislate cannabis sales: is it up to states to decide? Or will the government be required to de-schedule cannabis from schedule 1 in order to uphold other high-risk sales bans?
It is our opinion at Ledger-Safe that multiple bi-partisan bills will be introduced during the 2019 legislative year to smooth the transition to federally legal cannabis policy. The policy will not be able to come into play until after 2020, but setting the stage for states to take control of their own agricultural futures is a step that must gain support from both sides of the isles while allowing state legislature to take control in defining custom policy for their constituents.
At Ledger-Safe we also believe that the current environment is ripe to help redefine how we track financial information in high-risk industries. Our solution includes utilizing existing ‘Know Your Customer’ (KYC) and ‘Anti Money Laundering’ (AML) technology, and increasing the trust of that data through encryption and and partitioned access.
Only when you can trust the transactional compliance can you trust the industry growth around federally questionable industries. America is not willing to compromise it’s domestic or economic security based on the whims of it’s populations, it is up to the population to help define a new set of standards that allow progressive growth for both the US economy, and the US legal system.