Vermont regulators weigh in on how SAFE Banking Act could affect cannabis industry

Published: May. 8, 2023 at 4:01 PM EDT
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MONTPELIER, Vt. (WCAX) - Vermont regulators aren’t sure what kind of impact the SAFE Banking Act would have here.

The Department of Financial Regulation says they continue to hear banking for the cannabis industry is a hurdle for growers and retailers.

They believe the SAFE Banking Act would provide some relief and bring more banks to the table for cannabis businesses to deposit earnings or take out a loan.

Vermont regulators say if it passes, there would still be a lot of red tape before costs associated with depositing would be clipped.

The Department of Financial Regulation wants banks considering entering the space to reach out.

“In the last few weeks we have already engaged two institutions that had some questions about setting up a program, so there is interest out there and we would be willing to continue to work with any institution that is looking to do so,” said Aaron Ferenc, the deputy commissioner of the Vt. Department of Financial Regulation.

The Vermont Cannabis Control Board supports the legislation but doesn’t believe the act is a silver bullet for fixing cannabis industry banking. They say more needs to be done, like lowering deposit-related fees before more small retailers and cultivators could get on board with banking their earnings.

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