Recently, a bill designed to break through the prohibition on cannabis banking is being blocked by the Senate banking committee. However, the committee chair said he’s now ready and open to discuss the issue.
Slightly over a week after a long-delayed cannabis banking hearing, Mike Crapo, Senator of Idaho, seems to have come around to the idea of a reform bill.
Mike Crapo is one of the biggest current roadblocks to cannabis banking reform. For him to signal his being open to discuss the issue is a massive step forward.
Crapo has stated that the current red-tape blocking cannabis businesses and banks alike from doing business with each other will not continue to work. With the current legalities, cannabis business owners are left with no option other than running cash-only operations. That means no loans, lines of credit, or other financial opportunities like working with investors.
Furthermore, running a cash-only business in the cannabis industry is extremely dangerous. For employees and business owners alike, handling and transporting tens, even hundreds, of thousands of dollars is a high risk of robbery or bodily harm.
Crap’s vote will be the deciding factor on Cannabis banking reform (at least for now). Anything less will not result in the measure moving forward to a full vote by the Senate.
It is important to note that Crapo is open about opposing the idea of federal legalization. However, the banking issue the current cannabis industry faces is something he is open to creating a solution for.
“We now need to, I think, move forward and see if there’s some way we can draft legislation that will deal with the issue,” Crapo said last week in Washington D.C.