Pot Inc. may finally be inching closer to the US bank access it craves

The barriers that have long blocked Pot Inc.from access to banking services may soon crumble, setting the stage for exponential growth in the $50 billion cannabis business, On The Money has learned.At this point, the key barrier is GOP opposition — mainly in the US Senate — to legislation known as the SAFER Banking Act that would create a “safe harbor” for marijuana, meaning big banks can finally lend money to any business that touches weed.But wait a minute, isn’t pot in its various forms — from joints, to gummies to gels and ointments — already legal in just about every state and recently, after President Trump’s executive order in December, also OK in the eyes of the federal government?That, it turns out, is a complicated question.

True, most states have decriminalized weed, and some have made it 100% legal.But Trump’s recent EO didn’t legalize pot on the federal level; it just made it less illegal.

It’s still a Schedule 3 controlled substance, meaning that it’s no longer in the category of heroin, but at least in the eyes of the feds, it still isn’t on par with aspirin or cough medicine.That means Pot Inc.still can’t set up an account at JPMorgan or get access to credit card services, much less lending or listing on a US stock exchange.

Banks are regulated on the federal level, meaning unless DC totally legalizes weed, bringing it down to a Schedule 4 or 5 drug, big banks won’t touch it. As long as that is the case, any company that touches the so-called plant must be financed more expensively by smaller lenders and, if it wants to go public, list its shares overseas, thus stunting the growth of Pot Inc.A workaround is the Safer Banking Act, which would shield banks from any legal liability from lending to Pot companies or underwriting weed stocks.It has faced intense opposition particularly in the GOP Senate — until maybe now.

Last week, I interviewed Tim Scott, the GOP senator from South Carolina and chairman of the Senate ...