A major marijuana lobbying company has apologized for sending a letter of apology to the Senate Committee leadership regarding a bipartisan cannabis bank bill. The letter contained “inappropriate references” to Chinese investments in an “misguided effort” to push amendments to expand the legislation.
The original letter that was mailed to Senate Banking Committee Leaders last week caught some by surprise. This is because it advocated a significant revision in order to open up all financial services for the cannabis industry. It also included representation on major U.S. Stock Exchanges. The letter’s argument that a broader reform was necessary to compete with an illegal market funded by “Chinese investors” sparked controversy.
Some interpreted the language as being racially offensive, and that it played into xenophobic fears about China and Chinese people. This could have alienated Asian advocates within the community.
The Liaison Group, which led the SAFE Banking for Equity letter, now retracts it and apologizes for the organizations listed as signatories who did not have the opportunity to review it before it was sent.
The statement states that “The Liaison Group admits that the language used to refer to ‘Chinese backed investments’ was an attempt made with poor judgment and a misguided effort.” The reference was inappropriate, and it should not have been used. By doing this, we incorrectly characterized the market and singled out an element in a way that was inappropriate.
“TLG apologizes sincerely for the harm caused to others by this letter and language. We are committed to do better. It says that words matter and we never intended to promote harmful racist or xenophobic feelings. The SAFE4Equity affiliated organizations strive to create and represent an industry that is more diverse and equitable and do not endorse the reference in this letter. We, as the authors of this email, accept full responsibility for any damage caused by our inadvertent actions.
Disclosure: TLG staffers are supporting Marijuana Moment through monthly contributions on Patreon.
The Asian Cannabis Roundtable released a press release after the original letter, urging the authors to “retract any inflammatory references or implied sentiments which equate Chinese-backed investments with illegal activity.”
It says that “Such statements can be harmful, as they promote xenophobia, and dehumanize [Asian Americans, Native Hawaiians and Pacific Islanders],” adding that the National Cannabis Roundtable, which is affiliated with TLG, should “make a meaningful contribution to an organization supporting marginalized Asian communities.”
TLG stated that “SAFE4Equity Affiliates will be submitting for record a revised letter that clearly represents their positions,” but did not specify whether they would take the additional step to make the donation recommended.
In a telephone interview with Marijuana Moment on Thursday, Kristin Jordan (founder and president of ACR’s board) expressed her hope that all parties involved would take the necessary steps to learn “how to talk about such issues in a way that is sensitive to affinity groups as ours”.
Jordan says that despite the fact that the recent events have taken time away from her other work, she has learned valuable lessons that show “that the advocacy movement is strong.”
She and other leaders “picked the phone because we knew all these advocacy leaders — and folks were quick-to-respond, quick-to-recognize the issue, and quick-to-identify their own culpability.”
Jordan stated, “I’m really happy and excited to see that the statement is harmful and that it has repercussions.” “We’re in a month when we are supposed to celebrate Asian heritage and this is an affront to the advocacy they are trying.
She added, “While there may be attempts made to divide or splinter our advocacy community over policy issues, I think the strength of the relationships we have, and the mutual respect between us, is what really wins out.”
The problematic language in the letter sent to the committee was reminiscent of rhetoric used in Congress to describe China-adjacent organizations. Recent reporting linking Chinese investors to illegal cannabis cultivation in the United States has added fuel to this fire.
Jordan stated that “the troubling thing” is that, when he spoke to insiders of the political world in Washington D.C. they said that this was D.C. lingo. This is not necessarily considered as inflammatory language.
The marijuana movement is focused on correcting the harms caused by racially discriminatory enforcement in the past.
Ophelia Chong of Asian Americans for Cannabis Education wrote on Wednesday in a LinkedIn posting that “TLG corrected this blunder quickly and with grace.”
She said, “I’m grateful for the support of our diverse communities here in Cannabis.” “We have all made mistakes and turned them into a lesson.”
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The coalition’s request for changes to the SAFE Banking Act, which went beyond the current scope, was also unpopular. Some felt that the amendments would primarily benefit large cannabis companies without addressing the harmful effects of the drug warfare.
This is one of the most recent examples of how the debate on banking legislation has evolved during the current Congress.
After comments made by a Senate Banking Committee hearing earlier this month, where a compliance official suggested a “pause”, a marijuana financial services firm revised its testimony separately on the legislation.
Next, the SAFE Banking Act will be marked up by a committee. Senate Majority leader Chuck Schumer (DNY) expressed his hope that this would happen “in a near future.”
It is planned to pass a clean, standalone bill from committee and then offer amendments in the house. Schumer and his colleagues have stressed that the legislation needs to be revised in order to include provisions for “criminal justice”, such as record expungements.
The bill may also be amended to address concerns raised by a Democratic Senator and key federal officials, as well as consumer advocacy groups who recently said that a particular provision in the bill might limit the ability for regulators to act against those abusing banking services.
Jacky Rosen, a Nevada senator, said recently that the SAFE Banking Act should be passed with an amendment to allow cannabis businesses access to federal Small Business Administration services (SBA).
Schumer stated last month that he is “disappointed,” that the so-called SAFE Plus cannabis reform package did not advance last year. He added that “we were close,” but that “we ran into resistance in the last moment.” He also said that lawmakers will “continue to work in a bipartisan manner” in order to accomplish the task.
In the first months of the new Congress, the majority leader has met with Democratic members and Republican members to discuss marijuana reform proposals which might be able to garner bipartisan support this year.
Sen. Cory Booker, D-NJ, said that lawmakers are working to “resurrect the cannabis reform package. He acknowledged that the failure to advance an industry banking solution “literally” means hundreds of businesses will go out of business.
Rep. Earl Blumenauer, D-OR, who is the lead sponsor of the House’s version of the SAFE Banking Act said that it was important for advocates and legislators to align on any incremental proposal to end the war on drugs, cautioning against an “all or nothing” mentality.
The American Bankers Association also renewed its call recently for the passage the legislation. All 50 state chapters of the ABA did the same. Insurance and union organizations also wrote to Congress.
Nevada Legislature Tells Congress to Legalize Marijuana through Newly Passed Resolution
Photo by Philip Steffan.
The post Marijuana lobbying firm apologizes for’misguided letter’ referring to ‘Chinese investors’ in push for Banking Bill Amendments first appeared on Marijuana moment.
