New York, NY (March 24, 2021) – The National Association of Cannabis Businesses (NACB) and the Emerging Markets Coalition (EMC) have formed a strategic alliance to develop a National Standard for Cash Management for the cannabis industry. The U.S. legal cannabis market is projected to grow to $35B by 2025, yet operations in licensed cannabis companies are still cash-based.
“Financial institutions have been hesitant to serve cannabis-related businesses due largely to the fact that cannabis remains illegal at the federal level. Even after legalization occurs there will be a steep learning curve for both industries,” said Gina Kranwinkel, President and CEO of NACB. “The new National Standards for Cash Management will provide cash management tools and protocols cannabis-related businesses need to incorporate in their operations to be ready and able to work with financial institutions. We couldn’t be more pleased to partner with EMC and look forward to sharing their expertise and ours.”
“The Emerging Markets Coalition is excited to be partnering with NACB in developing standards. This is a collaboration of both the banking and cannabis industries to ensure pragmatic and prudent practices to support the transparency and anti-crime efforts necessary in a cash heavy industry” said Kirsten Trusko, EMC’s CEO and Co-Founder. This is will be the first in a series of planned standards around money related to cannabis commerce – to be developed by NACB and EMC members.
“Our strategy with the Cash Management National Standard is to help the cannabis industry self-regulate until financial institutions are ready to work with us,” said Kranwinkel. “It will cover best practices in areas such as cash management and currency deposits that will enable cannabis businesses to reduce costs and gain more control of their finances. The Cash Management Standard will help both industries build mutual understanding and expectations that can lead to strong working relationships.”
EMC’s goal for cannabis financial services is simple – a coalition to drive collaboration across the financial services and cannabis industries to drive normalized financial services (banking, payments, insurance, lending, etc). We work in industry, government and society to help ensure safe, transparent, and fairly taxable opportunities in banking, payments and insurance. EMC and its members educate, advocate, protect and promote the very fundamentals of normal financial business operations in underserved markets.
NACB’s mission is to shape the legal cannabis market into a safe, responsible, and ethical industry. It is the only organization in U.S. cannabis whose members are vetted as being responsible, trustworthy, and compliant with NACB National Standards. The Cash Management Standard will be the newest in NACB’s series of national standards which represent best practices in cannabis business. National standards in Packaging and Labeling, Advertising, Lab Testing, Infused, Hemp, and Cybersecurity have already been developed through NACB’s deliberative, inclusive process and adopted by NACB members. Read more about NACB national standards.
About the National Association of Cannabis Businesses (NACB): The National Association of Cannabis Businesses (NACB) is one of first self-regulatory organizations in the cannabis industry. NACB’s mission is to advance the industry by building consensus around best practices, promoting business responsibility and demonstrating to regulators what transparent and responsible regulations should look like. Compliance with NACB national standards is required for ongoing membership in the NACB.