30 Marijuana Trade Groups Urge Senator Not to Cap THC Levels in Safe Banking Act
Yesterday, 30 marijuana trade groups urged Senator Mike Crapo R-Idah0 to refrain from limiting THC levels in the Secure and Fair Enforcement (“SAFE”) Banking Act (House bill HR 1595). The SAFE Banking Act would essentially provide state-legal marijuana businesses with full access to banks and other financial services, as well as allow consumers to use credit and debit cards when buying legal marijuana. Crapo, who opposes legalization of marijuana, has recently said he’s concerned the bill didn’t address the drug’s high potency, health risks and appeal to children in vaping form. He suggested banks should be prevented from dealing with companies that sell cannabis at higher than 2% potency until each state “determines the appropriate level of THC potency for cannabis.
In the letter, the cannabis industry groups express concern that some of Chairman Crapo’s proposed changes to the SAFE Banking Act would undermine its goal of improving public safety. The letter specifically addresses the senator’s suggestion that banking services might only be made available to businesses that sell cannabis products that test below 2% THC, making it nearly impossible to operate profitably.
Due to the opposition of Crapo, who is Chair and therefore singlehandedly controls the legislative agenda of the Senate Banking, Housing and Urban Affairs Committee, the bill is likely doomed. This is despite overwhelming bipartisan support in the House, who passed the bill in a 321-103 vote.
For more information about banking state-licensed marijuana entities, or details on the SAFE Banking Act, contact Braden Perry, or any of the members of Kennyhertz Perry’s Medical Marijuana Practice Group.
Kennyhertz Perry advises clients on a wide range of medical marijuana compliance and regulatory matters. Kennyhertz Perry partner Braden Perry spent time as a Senior Trial Attorney with the Commodity Futures Trading Commission and is well equipped to assist with the banking and other financial issues related to the medical marijuana industry.
Kennyhertz Perry partner John Kennyhertz is former in-house counsel at a private equity firm, and has structured transactions for very small and very large clients alike. He has substantial experience in highly-regulated industries such as online lending, and industries with rapidly-evolving regulations, such as cryptocurrency. He provides medical marijuana operational and compliance counseling and offers advice on appropriate modifications of transaction structure and documentation.
Kennyhertz Perry attorney Ben Tompkins is a former federal prosecutor in Los Angeles as well as a former Trial Attorney for the U.S. Department of Justice Tax Division. He is well equipped to provide advice regarding the rapidly-evolving tax landscape in the medical marijuana industry.
Kennyhertz Perry attorney Arthur Chaykin is a former law school professor and head of litigation at Sprint. He is an expert on intellectual property law, and devises creative solutions to protect client’s IP in the medical marijuana industry, even when certain federal protections are unavailable.
Kennyhertz Perry attorney Jeff Donoho is an expert in small business formation and government compliance. His knowledge of the labyrinthine medical marijuana application process helps him provide detailed guidance to clients.
Kennyhertz Perry attorney Mit Winter is a former partner at an AmLaw 100 law firm. An expert litigator, his skill in anticipating issues before they become serious problems is valuable to all clients, and particularly those in the medical marijuana industry. In addition, his skill as a writer makes him a valuable asset to our application writing team.
Kennyhertz Perry attorney Jon Dedon previously worked in the appellate litigation division of an AmLaw 100 law firm. Jon has worked extensively on marijuana and hemp-related regulatory compliance for numerous financial institutions and payment processors. His contacts with executives in marijuana businesses in Washington, California, Michigan, New York, Illinois, Ohio, Oklahoma and California, as well as internationally in Germany, Canada, Colombia, and Australia prove valuable when advising clients regarding medical marijuana in Missouri.
Clients also benefit from Kennyhertz Perry’s experience in related areas of law, such as litigation, banking, securities, tax, intellectual property, employment, insurance, and its regular practice before the Missouri administrative agencies and courts. Medical marijuana clients choose Kennyhertz Perry because the firm’s lawyers tailor their advice to the unique issues presented by each matter they handle.
To learn more about Kennyhertz Perry, LLC, please visit kennyhertzperry.com.
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