WWMMD?

What Will Mitch McConnel Do?

Tyler Strause
Nov 4 · 4 min read
Mitch McConnel speaks in front of a field of industrial hemp.
Mitch McConnel speaks in front of a field of industrial hemp.

By: Tyler Strause — Co-Founder, Randy’s Club

When it comes to federal policy related to cannabis and hemp, no figure looms larger than Kentucky Senator and Senate Majority Leader, Mitch McConnel. Despite his conservative bonafide and steadfast opposition to cannabis legalization broadly, the senator from Kentucky has been a leading proponent of the legalization of industrial hemp, in part to restore Kentucky’s legacy as a leading producer.

Recently Mitch McConnell met with executives from California’s regulated cannabis industry where he heard about the need for cannabis banking reform. He also toured at least one cannabis company seeing first hand how far the industry has come.

McConnell attended two days’ worth of meetings with cannabis industry executives, small-business owners and advocates in Southern California, to discuss potential cannabis-related banking reforms and other topics. It’s not immediately clear whether these meetings signal a shift in his thinking about cannabis in general or whether he is simply paying political lip service to a new constituency growing in both clout and influence. Regardless, it’s absolutely positive that McConnell is meeting with stakeholders in the cannabis market.

The U.S. market needs reforms at the federal level to allow companies access to banking and payment processing. Without this access, legitimate companies that are following the rules will continue to face major obstacles to their success. Current laws unfairly penalize businesses that obey federal laws, such as hemp farmers growing federally legal industrial hemp for producing CBD-rich hemp extracts to companies participating in state-regulated, medicinal and adult-use cannabis markets.

“We’re happy to see that Leader McConnell is coming to see how a regulated market is an improvement over prohibition,” National Cannabis Industry Association executive director Aaron Smith said in an interview. “Right now the priority is banking, which affects [McConnell’s] constituents in the hemp and CBD industry, as well as legal cannabis businesses here in California. That’s really our primary ask — common-sense policies around banking and public safety, and we’re hopeful [McConnell] will see the need for that and move forward along with Chairman [Sen. Mike] Crapo.”

The senator’s visit to California comes weeks after the Democratic-controlled House of Representatives passed the Secure and Fair Enforcement (SAFE) Banking Act, a bill aimed at giving banks and credit unions additional clarity around servicing cannabis companies that wish to open accounts for things like paying bills. Because of conflicts between state and federal law related to hemp and regulated cannabis (marijuana), financial institutions face ambiguities and can encounter legal problems leaving cannabis companies, including those that operate cannabidiol, or CBD, businesses, to face difficulties banking.

Up until recently, McConnell appeared to be a major roadblock to the Senate taking up the bill, and has said in the past that marijuana is hemp’s “illicit cousin, which I choose not to embrace.” The hemp industry holds a significant amount of power in Kentucky and a new provision in the SAFE Act grants specific protections to hemp farmers thereby benefiting farmers in his home state.

The future of the hemp industry depends upon the federal government continuing to reform it’s cannabis laws to allow state governments to permit commercial cannabis companies to exploit opportunities in state, national and global hemp and regulated cannabis markets. The growing popularity and profitability of hemp and regulated cannabis companies show policymakers and regulators how a regulated market can generate revenues for local, state and federal governments while doing a better job of restricting the illicit markets and protecting consumers and children from the negative impacts of cannabis, whatever they may be.

All of this comes in the wake of the USDA releasing it’s draft regulations for industrial hemp cultivation. These proposed rules establish federal standards for the cultivation and testing of industrial hemp for the purposes of compliance with the legal standard. These details will continue to be discussed and commented upon until the rules are formally adopted in time for next year’s hemp crop.

What this progress means for us, at Randy’s Club and for our customers, is that for the first time we will be able to source our raw hemp material and produce our extracts here in the State of California. So while there’s more progress to be made, a great deal of progress has been made and we are excited to continue to be a part of the legal California Hemp Industry.

Randy’s Club

The official blog of Randy’s Club

Tyler Strause

Written by

Founder of Randy’s Club. Randy’s Remedy, a line of botanically complete products made with natural cannabinoids from hemp and other botanicals.

Randy’s Club

The official blog of Randy’s Club

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