NEW YORK – The cannabis industry’s first self-regulatory organization (SRO), the National Association of Cannabis Businesses (NACB), launched today with a mission to support the compliance, transparency and growth of cannabis businesses in the U.S. Led by a team of government, legal, banking and data security experts, the NACB will help member businesses establish voluntary national standards that address critical issues such as advertising and financial integrity.
Founding members of the NACB include major industry operators from across the country: Buds & Roses, Cresco Labs, Etain, Green Dot Labs, Local Product of Colorado, Matrix NV, Mesa Organics, and others. A licensed owner of a cannabis dispensary, grower, or any other ancillary business may apply to become a member at www.NACB.com. 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 (Source: Cowen and Company). SROs, like FINRA (Financial Industry Regulatory Authority) in the financial industry, are proven to be a highly effective means of helping to grow industries, reduce regulatory uncertainty, and protect the public. Similar to other SROs, the NACB intends to work with members to create uniform, national standards to ensure its members act responsibly. The NACB also intends to provide members access to expertise, tools and services they are unlikely to access elsewhere that are intended to help them enhance the value of their business and navigate the complex web of constantly shifting regulations they face every day.
The NACB is led by President Andrew Kline, who served as an Assistant US Attorney driving federal enforcement and as a senior advisor to Vice President and then-Senator Joseph Biden. Kline reports to NACB CEO Joshua Laterman, who began development of the NACB three years ago after a nearly 20-year career as U.S. general counsel of global financial and investment institution Natixis and as general counsel of a portfolio company of Texas Pacific Group.
“The cannabis industry is on a historical growth trajectory that is expected to continue for years to come, but even the most established, well-run businesses recognize that the future favors the prepared,” said Laterman. “As other industries have experienced with their SROs, establishing and committing to voluntary national standards will enable cannabis business owners to demonstrate impeccable business and compliance practices to consumers, regulators, banks and investors. Andrew and the team have every base covered, with proven expertise across federal government, data and analytics, and the cannabis industry.”
Kline said: “To ensure the NACB achieves our mission, we 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. 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.”
More information about NACB and an application for membership are available at NACB.com.