In a Wednesday statement, Senate Banking Committee Chairman Mike Crapo (R-Idaho) said he opposes a House-passed bipartisan bill to give banks and credit unions legal cover to serve cannabis firms, but is open to amending the measure to satisfy his concerns.
Crapo said he had “significant concerns” that the Secure And Fair Enforcement (SAFE) Banking Act does not address the potency of cannabis, marketing the drug children, lack of research on its health effects, and the ability of cartels and other criminal groups to profit.
Crapo’s opposition to the measure poses a significant, if not entirely shocking hurdle to the coalition of financial sector lobbyists, criminal justice advocates and public safety groups supporting the SAFE Banking Act.
The House passed the bill in October by a vote of 321-103 with support from nearly all Democrats and substantial group of 91 Republicans. The measure would prevent banks and credit unions from facing federal charges for serving cannabis dispensaries, growers and firms that handle the drug as long as they comply with state laws.
The rapid state-level legalization of cannabis has created a multibillion-dollar industry in the U.S., but banks and credit unions have been reluctant to risk federal prosecution for serving state-legal businesses. That has forced hundreds of cannabis firms to operate only with cash, making them prime targets for armed robbery and other crimes.
Though cannabis is illegal under federal law, 33 states have legalized medical or recreational use of the drug. Another 14 allow residents to use nonintoxicating cannabidiol (CBD) products, leaving just three states without any legally approved cannabis use.
One of those three states is Crapo’s home of Idaho, and his personal opposition to cannabis legalization was an early obstacle to the bill’s Senate passage. But Crapo’s reluctance to move any bill involving cannabis is widely shared among Senate Republicans, including Senate Majority Leader Mitch McConnelll (R-Ky.)
The bill’s supporters counter that the measure doesn’t affect the federal legal status of cannabis, but ensures that the state sales of the drug are monitored through federal banking laws. Advocates also argue that forcing cannabis companies to use only cash raises public safety risks and reduces transparency.
The bill’s supporters remained hopeful that they could find a way to get the bill through the Senate.
“America’s credit unions are eager to continue engaging with the Chairman as he seeks a solution that enhances community safety through access to mainstream financial services,” said Ryan Donovan, chief advocacy officer for the Credit Union National Association (CUNA), a trade group for credit unions that endorsed the bill.