Marijuana Supporters Surprised After Mc Connell’s Opposition That Destroys The Banking Bill!

Marijuana Supporters Surprised After Mc Connell's Opposition That Destroys The Banking Bill!

Senate Republican Leader Mitch McConnell (Ky.resistance )’s helped ensure that Congress did not enact a vital cannabis banking law, dealing a massive blow to the industry. This has infuriated Marijuana supporters and businesspeople. The SAFE Banking Act, a bipartisan initiative that would remove government limitations that make it difficult for legal cannabis firms to obtain banking services, is not included in the $1.7 trillion omnibus funding package published on Tuesday.

For Florida-based Trulieve Cannabis Corp. CEO Kim Rivers, “the fact that there was speech after speech and tweet after tweet about how cannabis policy was a priority and we know they were quite comfortable that the votes are there, but it just was never taken to the floor,” was disheartening. There is widespread political support for the measure.

The bill was approved by the House of Representatives seven times, with a record-breaking 321 yes votes cast last year, and received enough backing from Republicans to pass the Senate with a majority of 60 votes. Mitch McConnell, however, did not agree with this and so it was not included in the final budget package. At the beginning of this month, McConnell prevented the SAFE Banking Act from being included in the military bill on the grounds that it would make the U.S.

banking system “more sympathetic to illegal substances.” With Republicans taking control of the House, the bill has an even more uphill battle ahead of it before it can become law. Those who back the law say failure to act might have catastrophic results. Since many cannabis companies are restricted by federal law from using credit cards, they have been particularly vulnerable to a spate of robberies.

Dispensaries have a hard time securing loans and are often charged exorbitant interest rates even if they are approved. This is because of the federal government’s threat of penalizing banks that engage with cannabis enterprises. For the foreseeable future, “this very much means that there will continue to be people whose lives are being placed at risk because they are having to operate in an all-cash economy,” said Kaliko Castille, head of the Minority Cannabis Business Association.

Executives in the Cannabis industry cautioned on Tuesday that a large number of smaller businesses that have been waiting for SAFE Banking but do not have easy access to financing are in danger of going out of business. Some of these enterprises will enter the black market to avoid paying the high taxes caused by federal regulations that prevent cannabis companies from using typical deductions. Senators’ failure to approve SAFE Banking, according to Boris Jordan, executive chairman of the Massachusetts firm Curaleaf.

To quote one expert: “The illegal market is thriving because it doesn’t do testing, doesn’t pay taxes, and at the moment is not being enforced against. This is causing enterprises that are really operating under the laws to suffer.” After President Biden publicly backed marijuana reform for the first time in October, advocates were confident that the SAFE Banking Act would pass before the Democrats lost control of the House in the next Congress. Yet, this passage was never straightforward.

Originally intended to be part of last year’s defense package, Senate Majority Leader Charles Schumer (D-N.Y.) dropped it after receiving pushback from marijuana justice advocates who said the bill didn’t do enough to address social disparities stemming from the war on drugs. After being merged with the bipartisan HOPE Act, which would provide incentives for states to expedite the expungement of low-level marijuana convictions, Schumer eventually pushed for the bill.

McConnell, though, voted against including the legislation this time around. Inaction by the Senate “threatens public safety and undermines the progress states are making in mending the racial inequalities of the war on drugs,” according to a statement from Khadijah Tribble, CEO of the U.S. Cannabis Council. Schumer has been slammed by legislators and advocates for his decision to downplay the importance of a separate Senate vote.

Instead, he worked on a sweeping marijuana legalization bill that would never pass the Senate. Prominent Republican senators are worried that the banking bill could impede investigations into money laundering and illegal drugs, according to a Justice Department letter published earlier this month. There are also many who have turned inside and argued that, given Marijuana‘s widespread appeal, the cannabis industry’s message should have been more well-received on Capitol Hill.

The people “felt we had more support than we really did” in some areas, Castille added. “And ultimately, we still have some work with more offices to ensure that we have the votes there, and that Leader McConnell doesn’t feel like he’s in a position of power to shut things down,” he added. Two-thirds of respondents approve of allowing cannabis businesses to access banking services, according to a Morning Consult research commissioned by the Independent Community Bankers of America in September.

In a poll conducted in November by Pew Research, only 10% of respondents believed that marijuana should be illegal under any circumstances. For cannabis advocates, Tuesday’s omnibus package is like a double whammy. It also includes the Republican rider that has been attached to every budget bill since 2014, when the District of Columbia people decided to legalize marijuana and prevent its implementation.

When the 116th Congress convenes, the business will restart its lobbying efforts, but this time the tables will be turned. While it’s possible that the Senate might approve the measure, the House will be far more difficult. House Minority Leader and a heavy favorite to become Speaker Kevin McCarthy (R-Calif.) supported the Secure and Fair Enforcement for Every Transaction (SAFE) Banking Act.

It’s not obvious, though, if he would make a floor vote a top priority in his first year. Whether or not the House will even debate the issue is the real question. What Jordan had to say about it. McCarthy will set the schedule. He will have to win over the House’s more conservative members, who are unlikely to be enthusiastic about this.

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