Before the opening bell, Singlepoint, Inc. (OTC: SING) kicked off the new year by voicing its support for an ongoing congressional push calling for banking reform as it relates to the burgeoning legal cannabis industry. In mid-December, a group of 10 U.S. senators (http://nnw.fm/0Kbvs) from states across the country, including Alaska, Maine, Massachusetts, Minnesota, New Jersey, New York, Oregon, Vermont and Washington, issued a letter to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) calling for changes that could facilitate comprehensive banking services for cannabis industry companies doing business in the 28 states that have already legalized marijuana in some form. In addition to eliminating many of the unnecessary security risks that come with operating all-cash businesses, the senators note that banking reform in the cannabis industry will also benefit the federal government.
“The fledgling legal market for marijuana is around $7 billion, a figure that’s dwarfed by the overall billion US market, most of which remains illegal. This business environment is an invitation to tax fraud, robberies, money laundering, and organized crime … With tens of millions of Americans soon gaining legal access to marijuana under state laws, new guidance is necessary in order to allow banks to enhance the availability of financial services for indirect businesses that service the marijuana industry. This will not only bolster the safety of our communities, but it will also help to spur economic growth across the country,” the letter reads.
For Singlepoint, these sustained calls for banking reform in the cannabis industry serve as validation of the company’s recent strategic moves. During the fourth quarter of 2016, Singlepoint announced plans to awaken its SingleSeed subsidiary in order to capitalize on the evolving legislative environment surrounding the U.S. cannabis market. Upon its original launch following the legalization of marijuana for recreational use in Colorado, SingleSeed established a client base and positioned itself as one of the first merchant service providers in the space.
In recent months, the company has looked to capitalize on this ‘first-mover’ position while expanding its presence in the evolving cannabis market. In a December interview on MoneyTV with Donald Baillargeon, Singlepoint CEO Greg Lambrecht noted that the company is in the process of updating the SingleSeed website in order to better serve dispensaries following anticipated regulatory changes. In the meantime, the company is also making its text message marketing solution available to cannabis industry businesses in order to help them stay connected with clients while remaining up-to-date on SingleSeed’s continued efforts to facilitate non-cash payment solutions in the space.
“We are witnessing exciting, groundbreaking advances in the marijuana industry, and are encouraged to see congressional-level support for banking measures that would further revolutionize the way cannabis companies do business,” Lambrecht added in this morning’s update. “The regulatory environment is rapidly changing and SingleSeed is gearing up to provide dispensaries with payment processing solutions specifically tailored to their needs.”