A powerful U.S. Senate panel has moved to block an amendment to let marijuana businesses store their profits in banks.
In a 21 – 10 vote, the Senate Appropriations Committee tabled an amendment on Thursday that would have shielded financial institutions that open accounts for cannabis businesses that are complying with state laws from being punished by federal regulatory authorities.
Current policy, which forces many marijuana businesses to operate on an all-cash basis, is “a big problem because it’s great for organized crime, it’s great for money laundering, it’s great for theft and larceny, it’s great for cheating on taxes, it’s great for cheating on your payroll,” Sen. Jeff Merkley (D-OR), the sponsor of the measure, said in a brief debate before the vote. “We’re really facilitating crime by not enabling the banking industry to provide basic services.”
Last week, the House Appropriations Committee defeated a similar cannabis banking proposal.
Several Democratic members of the Senate panel who said they otherwise support the ability of marijuana businesses in a growing number of states to access financial services objected on procedural grounds to the measure, which Merkley was seeking to attach to the Fiscal Year 2019 Financial Services and General Government funding bill. [Read more at Forbes]