The Secure and Fair Enforcement Banking (SAFE) Banking Act, which would enable financial institutions to openly serve the cannabis industry, has stalled out in the Senate, to the frustration of the marijuana industry in particular.

The federal bill passed through the House in September with wide bipartisan support. As Crain's noted, a few Ohio Republicans even flipped from their past stances on marijuana to approve the measure, including Reps. Bob Gibbs (7th District), Bill Johnson (6th District) and Steve Stivers (15th District).

While there was hope that bipartisan momentum in the House could carry through the Republican-controlled Senate, many industry insiders worried the bill could get hung up in conservative hands.

On Dec. 18, that's exactly what happened as Senate Banking Committee chairman Mike Crapo voiced his opposition to the bill, putting the kibosh on any hopes for a vote on the bill to come before year's end.

As reported by American Banker, which called the development a "crushing blow" to marijuana banking legislation, Crapo laid out his views on the issue as such: "I have significant concerns that the SAFE Banking Act does not address the high-level potency of marijuana, marketing tactics to children, lack of research on marijuana's effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system."

Alex Thomas, executive director of the Ohio Medical Marijuana License Holder Coalition, called Crapo's position frustrating while emphasizing the costs, security risks and general hassle marijuana-related businesses face without effective access to the banking system.

"It's very disappointing to see there is still this kind of attitude coming from Chairman Crapo," Thomas said. "But we are going to continue working very hard to advocate at the federal level and with Congress and the administration to explain that the longer we wait to pass something like this bill, the more it's going to continue to put the safety and security of legal marijuana programs around the country at risk. This will all continue to increase compliance costs for businesses and, ultimately, costs for patients."

The American Bankers Association and its state counterparts, like the Ohio Bankers League, are all for the SAFE Banking Act for similar reasons.

While some cannabis companies are being serviced by the banking system — at least 633 as of this spring, according to a report from the Financial Crimes Enforcement Network — other companies are popping up to try to help banks with their compliance efforts.

The institutions striking deals to work with marijuana companies are largely state-chartered banks and credit unions, which right now do little more than take deposits. And they don't usually publicly advertise what they're doing.

Both banking and marijuana industry stakeholders are anxious to see some support. But with Crapo's recent comments, it's unclear if that will come anytime soon with the SAFE Banking Act.

"This really is something that would make a big impact in the day-to-day operations for licensees in the Ohio medical program," Thomas said.