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House May Vote on SAFE Banking Act This July
The Cannabis-focused banking act would expand marijuana-industry protections, but controversy abounds.
Anna Lad & Robert Baron
July 09, 2023
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Banking News
July Marijuana House Banking Vote Possible
Lawmakers are optimistic about passing the Secure and Fair Enforcement (SAFE) Banking Act, but negotiations continue over Section 10. Senator Steve Daines (R-MT) is open to adding expungement provisions but emphasizes keeping the focus on SAFE Banking in a bipartisan manner. Expanding protections for the marijuana industry have faced criticism. Nonetheless, the American Bankers Association and other organizations continue to support the passage of the SAFE Banking Act.
Senator Daines’ staff office announced:
Daines is open to including the [Harnessing Opportunities by Pursuing Expungement (HOPE) Act] in the final package and should it come to the floor, there will be an open amendment process.
Jeff Leerink’s Firm Buys SVB’s Investment Arm
SVB founder Jeff Leerink's firm, Leerink Partners, has acquired Silicon Valley Bank's investment-banking arm after approval from a bankruptcy court judge. Judge Martin Glenn initially refused approval due to a since-removed clause exempting SVB executives from liability. The deal includes equity financing from hedge fund Baupost Group and financing commitment from Leerink's team. The investment-banking business will be rebranded as Leerink Partners.
AI & Blockchain
IRS Investigates Kraken User Info
A judge has ruled that the Internal Revenue Service (IRS) may be privy to the personal information of cryptocurrency traders who engaged in $20,000 or more in annual trading on the Kraken exchange from 2016-2020. The IRS is currently investigating underreported tax liabilities. Kraken must provide the IRS with information on over 59,000 accounts and turn over 160 million transaction records, even after the court limited the IRS's requests, stating they were broader than necessary. The ruling highlights increased regulatory scrutiny faced by the crypto industry.
Ramp Acquires Cohere, Enhances AI-Powered Customer Support
Finance automation firm Ramp has acquired customer support platform Cohere, known for its use of generative AI and large language models. Cohere's technology helped automate ticket resolution with around 60% accuracy, utilizing unstructured data to extract insights. The acquisition aligns with Ramp's focus on leveraging AI to improve customer workflows and efficiencies in the financial sector.
Ramp CEO Eric Glyman said:
[Large language model-powered customer support] felt like a very different approach. It was taking learnings from what our agents were saying and not only improving responses but suggesting and getting to the right answer quicker and it [felt] transformative.