GOP Senator Explains Why He Voted For Marijuana Banking Bill, Though He Doesn't Support Legalization

U.S. Senator Kevin Cramer (R-ND), a member of the Senate Banking Committee, joined Brian Sullivan on CNBC’s Last Call one day after the Senate committee approved the marijuana banking measure. He shared why he voted in favor of the bill, even though he doesn’t support marijuana legalization.

“I'm one of those Republicans who does not support the legalization of cannabis, but in my state of North Dakota, the citizens decided to make it legal for medicinal purposes, which I think 37 other states have done the same thing,” Cramer said. “That's called federalism in my view, and I support federalism. I think it makes no sense to have a controversial business like cannabis legalization, be a cash-only business. SAFER Banking puts cannabis in a category that allows the regulated banking industry to do the banking rather than the duffel bags full of cash, which I think it was clearly unsafe for lots of reasons, but it also is unchecked.”

One of the biggest obstacles the marijuana industry is facing is the lack of access to banking and financial institutions due to its federal status as a Schedule 1 substance. The Secure and Fair Enforcement Regulation (SAFER) Banking Act, which was approved by the Senate Banking Committee in a historic vote last week aims to change that.

This legislation sponsored by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT), would provide legal marijuana businesses access to banking and financial institutions. The bill, passed the committee one week after it was filed with amendments, whose purpose was to obtain more of bipartisan support.

“Medicinal marijuana is legal in North Dakota, and we're talking about a federal law here that doesn't coincide with the decision of various, individual states,” Cramer continued. “When it comes to the precepts of cooperative federalism, or a federalism model like the United States is, I think you have to yield to the states. While I wish we didn't have any legal marijuana anywhere in the country, the reality is we do, and that horse left the barn a long time ago. Now we have a cash-only business that's a controversial business. I think we as federal lawmakers have to recognize what's going on in reality on the ground, both in our states and other states.”

Nevada Senator Also Advocates For Banking Reform With Emphasis On Small Businesses

Senator Jacky Rosen (D-Nev), co-sponsor of the measure, is also pushing for the reform.

“These are just outdated federal policies that we have to change,” Rosen told Fox5 days after the committee approved the bill. “They still haven’t had access in all these years to the regular banking resources that any other small business would have.”

The biggest problem? Legal marijuana dispensaries must operate in cash, making them a target for robberies, and many have already occurred.

“I’ve had our tax department come and talk to me about this because businesses have to pay their regular taxes or pay other things, they are carrying around large amounts of cash...It makes them vulnerable to attack,” she added.

Rosen continued, explaining that 99% of marijuana operators in Nevada are actually small businesses. “I just want our cannabis businesses to be treated like every other small business,” Rosen said.