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LD 1635, this session’s state bank bill, was up for consideration in the Maine House of Representatives on June 12 after being voted Ought Not to Pass by the Senate last week. The bill, proposed by Senator Eric Brakey, would have disrupted Maine’s financial institutions in favor of creating a state bank with 100% reserves.
The vote went smoothly, with the House accepting the majority committee report of Ought Not to Pass without any objections.
“I am glad that once again the Maine Legislature killed this unnecessary proposal,” said Robert Caverly, League Vice President of Advocacy & Outreach. “This is a solid win for our advocacy efforts, but the state bank issue will be back again someday.”
The bill was an attempt to circumvent federal guidelines on cryptocurrency and cannabis banking. It also aimed to cushion inflation by providing for 100% reserves and the exchange of gold and silver coins for cryptocurrency. The reality is that when it comes to these issues, Maine’s credit unions have been and will continue to be leaders in smart, sensible solutions that balance risk while still protecting credit union members.