Senate Committee Blocks Cannabis Banking Bill

[dropcap class=”kp-dropcap”]C[/dropcap]annabis businesses will continue to be forced to deal in cash, after another solution was tabled for the time being. The Senate Appropriations Committee shot down an amendment June 21 that would have protected banks that cater to cannabis businesses.

1152, or the Secure And Fair Enforcement (SAFE) Banking Act, was voted down 21-10. The bill was, however, supported by Sen. Majority Leader Mitch McConnell and Sen. Lindsey Graham, typically conservative leaders who are suddenly interested in cannabis. The bill was sponsored by Sen. Jeff Merkley, who pleaded his case before the vote. It would have blocked federal banking regulators from:

• Terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate marijuana-related business;
• Prohibiting or otherwise discouraging a depository institution from offering financial services to such a business;
• Recommending, incentivizing, or encouraging a depository institution not to offer financial services to an account holder solely because the account holder is affiliated with such a business;
• Taking any adverse or corrective supervisory action on a loan made to a person solely because the person either owns such a business or owns real estate or equipment leased or sold to such a business.

Cannabis activists including the leadership of NORML were disappointed, to say the least. “The Senate Appropriations Committee chose to bury its head in the sand rather than make it easier for licensed and regulated marijuana businesses to operate safely, transparently or effectively,” Justin Strekal, political director for NORML, told Forbes. “It’s absurd.”

Sen. Jon Tester explained his reasoning for opposing the bill. “I’ve supported it in the past and I think it’s different today,” Tester said. “It adds a level of confusion to the folks who are out there doing business.” Since the bill doesn’t deal with the Department of Justice, and only with the Department of Treasury, some leaders don’t think the bill is enough.