In this new Cannabis Exclusive podcast, TDR Founder Shadd Dales and lead financial writer Benjamin A. Smith interviewed the Co-founder and Managing Partner of Entourage Effect Capital, Matt Hawkins. Usually measured and skeptical on the chances of federal reform passing in Congress “having been through this several times already”, he’s nonetheless encourage by the prospects of the SAFE Banking Act advancing this time around. The reason: some key differences between this latest push and bill filings in the past.
Mr. Hawkins notes that SAFE Banking legislation this time around is “bicameral in nature”, which is a word that means having two separate legislative chambers or branches. The term is commonly used in political systems that have two separate bodies with the power to create and pass laws, such as the Senate and House of Representatives in Congress.
Mr. hawking is eluding to last week’s news that group of bipartisan lawmakers introduced a marijuana cannabis SAFE Banking bill in Congress. US Senators Jeff Merkley (D) and Steve Daines (R) along with US Representatives David Joyce (R) and Earl Blumenauer (D) introduced the bipartisan, bicameral Secure and Fair Enforcement (SAFE) Banking Act of 2023.
Under the proposed bill, financial institutions would be allowed to provide banking and financial services to legal cannabis businesses.
Furthermore, for the first time this legislation explicitly extends the safe harbor to Community Development Financial Institutions (CDFI) and Minority Depository Institutions (MDI) to ensure they can also serve cannabis businesses. CDFI and MDI serve underserved communities that face challenges in accessing capital and providing affordable access to financial services.
The SAFE Banking Act has passed the House seven times with broad bipartisan support.
Entourage Effect Capital is a venture capital firm based in San Diego, California, specializing in investing in companies in the cannabis industry. The firm was founded in 2014 and focused on companies involved in the cultivation, processing, and distribution of cannabis, as well as companies that develop cannabis-based pharmaceuticals, medical devices, and other products.
To view our previous Trade To Black podcast featuring CNBC’s Tim Seymour, click here.