Trade to Black Podcast: Regarding SAFE, “The House Doesn’t Matter” – Rob Sechrist
On this week’s episode of Trade to Black, we welcome Rob Sechrist, the Co-Founding President of Pelorus Equity Group, which is a Cannabis-use CRE Private Mortgage REIT. The topic of conversation: Sechrist gives his perspective on the SAFE Banking Act to Shadd Dales and Benjamin A. Smith.
SAFE Banking’s a big topic of conversation. It seems like just about everyone wants to see this pass, but the Dems want to see social justice and equity reform included before they’ll sign off on it. If you haven’t been following cannabis news, you might be wondering what does this mean?
Here’s some highlights from the podcast, but be sure to tune in to get the full details. And of course, be sure to like and subscribe to our content to keep up on the latest from TDR.
Cannabis legalization has two components
@2:30 Sechrist explains that legalization in cannabis is a broad topic. There’s actually two components, he says. The first, of course, is regulatory reform to make it legal. The second is decriminalization.
Sechrist explains that it’s very important to make sure that these categories are kept separate when discussing legalization, though they’re often conflated. Listen in to this portion of the podcast to hear the politicians stances, and what nuances are being missed, making it harder to get legalization pushed through.
If SAFE gets to Congress, “the House doesn’t matter,” says Sechrist
@11:21 Ben Smith asks what Sechrist thinks will happen when SAFE gets to congress, and whether it matters if a Democratic majority is in power in the Senate. Sechrist’s response? The House doesn’t matter.
It’s all about the Senate, he says, and the Senate threshold is to get 60 votes. Unless there’s some Budget Reconciliation Act, Sechrist doesn’t believe it will happen. At least – not the way Congress is structured now. Find more about why around the 12:00 minute mark, and what the gameplan will likely be for lobbyists and legislators.
What challenges do cannabis companies face without SAFE?
Many people don’t understand why the SAFE Banking Act is so important for companies working in the cannabis space. @15:00, Sechrist explains some of the everyday challenges without it.
@16:50, Sechrist goes on to explain some of the misconceptions that happen amongst investors when they hear about SAFE. Further, he goes on to explain what the investor takeaway should be in the worst case scenario.
Other key moments to listen into:
@20:00 Sechrist explains there are other issues for investors other than just legalization. This is what investors should think about when considering their strategy.
@22:44 Sechrist is asked about how California is shaping up, in matters of taxing and enforcement. There’s been a lot of pessimism from MSOs trying to operate in California. Hear his thoughts on this episode (and check out other recent guests on the subject of California).