A newly formed organization of legal experts and industry insiders will try to change the view on the cannabis market, thanks to the launch of the National Association of Cannabis Businesses (NACB) a self-regulatory agency for the industry in the US.
Despite the success stories in the cannabis landscape, there have been recent instances of critics calling out some light regulation or obscure business practices. This has lead to the June 15th launch NACB in the US–an organization that seeks to act as a regulatory body for the infant industry.
NACB will offer help to businesses associated with them to establish “voluntary national standards,” which the group says will address advertising and financial integrity.
“The launch of the NACB comes as the industry is experiencing significant growth, with sales of cannabis products nearing $7 billion in 2016 and estimated to reach $50 billion by 2026,” a statement from the association read.
Andrew Kline, who has served as a special counsel for the Federal Communications Commission since January 2016, will be the president of this new organization.
The role of the NACB
“[W]e will deliver best-in-class services to help the industry seize its full growth potential, including the development of national standards and access to a group of executives and advisors with deep experience across various highly regulated industries,” Kline said in the statement.
“In addition to access to our team, we plan to offer tools and services that will help our members to grow their businesses, including first-in-class technology,” he continued.
The group promised to establish an “ultra-secure” technology platform powered by an IBM (NYSE:IBM) infrastructure, to “demonstrate the transparency banks and investors require in order to conduct business with the cannabis industry.” The launch is expected to be revealed later this year.
Founding member and CEO of Etain a manufacturer of medical marijuana products–Amy Peckham, said the group will allow the industry to reach a much-needed level of transparency in order to “become legitimately recognized for the contributions cannabis has to offer to our society and economies.”
Despite the growth stories from the cannabis industry, at times companies and experts within the area remind investors just how new this market is. Much like industries before it, the cannabis sector must establish customs and self-regulatory groups. The creation of the NACB bodes well for the industry–if transparency and potent punishments are available in case of wrong doing.
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.