In a change of course this week, Senate Banking Committee Chairman Mike Crapo (R-Idaho) said he would hold a hearing on the cannabis banking legislation known as the SAFE Banking Act in the near future. Chairman Crapo has resisted a hearing on cannabis banking, arguing instead the issue should be addressed in the Senate Judiciary Committee through federal legalization.
In April, Senator Crapo stated “as long as cannabis is illegal under federal law, it seems to me to be difficult for us to resolve this.” Chairman Crapo expressed a change of heart this week in an interview with American Banker where he said he is “looking into” cannabis banking and that a hearing could be held “relatively soon.”
Some reports suggest the Senate Banking Committee could schedule a hearing before the August recess. Chairman Crapo’s reversal is the latest sign of momentum behind the advocacy push to resolve the cannabis banking issue that prevents banks from providing financial services to cannabis related businesses. The Chairman’s interview with American Banker was released a day after the House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security held a hearing on “Marijuana Laws in America: Racial Justice and the Need for Reform.” The hearing addressed the issue of marijuana reform more generally, but several members highlighted the prohibition on cannabis banking. There was bipartisan consensus throughout the hearing that Congress should enact legislation to resolve the conflict between state and federal cannabis regulation but members remain divided on the best path forward. Progressive Democrats are arguing for comprehensive reforms that legalize cannabis at the federal level, support minority owners of marijuana businesses, and reduce penalties for criminals with marijuana convictions. In general, Republicans are more supportive of the SAFE Banking Act and the STATES Act, a bill that would grant states autonomy to impose their own cannabis policy.