Chairman Crapo Offers Hope for Safe Banking in Controversial Industries
Similar points were made in a coalition letter led by the R Street Institute and signed by several free-market organizations and industry trade associations. The letter said that while there are some public safety concerns around the legal cannabis industry, these concerns exist and continue to grow because of the lack of safe harbors for businesses and ancillary businesses in the industry, which leaves them vulnerable. More on why these businesses are at risk, how government created the problem, and how they can fix it can be found here.
CEI agrees with the arguments made by CUNA, ABA, and R Street. We reiterate the point that the problems created due to ambiguity between state and federal law over the legality of cannabis banking can only be remedied with legislation like the SAFE Banking Act. That being said, Chairman Crapo is right to include an anti-Operation Choke Point measure in any cannabis banking bill hoping to pass the Senate. But he should also heed the warning of the nation’s Main Street banks and credit unions to avoid bogging down the bill with provisions that would make financial institutions de facto regulators of public health, public safety, or morality.