In a historic vote today, the House Judiciary Committee passed the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, marking the first time a congressional committee has approved a bill to end federal marijuana prohibition.
At Shield Compliance, we are excited to see growing support for legislation that would protect banks serving the legal cannabis industry, as well as movement toward an end to cannabis prohibition. However, even with these protections, financial institutions will still need to pass compliance exams and ensure illicit legacy funds stay out of the system. Shield’s solution automates and improves the compliance process while driving down operational costs.
Yesterday we announced a $5M Series A funding round led by Copia Investments. This round of funding demonstrates growing interest and demand for technology innovation for the legal cannabis industry, a market projected to be worth $66.3 billion by 2025, according to Grand View Research. There’s a tremendous upside for financial institutions serving this industry, as well. The Congressional Budget Office estimated that if the SAFE Banking Act took effect near the end of the 2019 fiscal year, starting in 2022, banks would see a $1.2 billion increase in deposits. By 2029, the amount would rise to $2.1 billion.
We also announced new agreements to provide our compliance management platform to financial institutions serving legal cannabis markets in Colorado, Illinois, Massachusetts, Michigan, Ohio, and Washington. Combined with our partnership with a multi-state MRB payroll processor, we are pleased to report that Shield now serves all states with legalized cannabis sales programs.