Cannabis Conundrum for Banks
Cannabis Conundrum for Banks
Currently, 20 states and the District of Columbia allow some type of legal marijuana use. On January 1st of this year, supply shops all across Colorado began selling to the general public (age 21 and over), in accordance with a voter referendum. Medicinal use bills have been filed or are expected to be introduced in eight additional states, while full legalization bills like that of Colorado have been filed in Vermont and New Hampshire. California has organized a committee to review how it can institute and oversee its own legal marijuana market.Â
The reason states are getting into the marijuana business is simple: money. On the first day of legal business, Colorado shops sold over $1 million of product. ArchView Market Research estimates national legal marijuana sales (recreational and medical) were $1.3 billion in 2013 and expects sales to skyrocket to $2.4 billion in 2014. The problem? Marijuana remains illegal under the federal Controlled Substances Act and financial institutions are barred from accepting money from marijuana transactions or else face civil and criminal penalties. As such, banks have refused to accept the business of marijuana establishments. From the proposal of state-owned banks to the Marijuana Businesses Access to Banking Act in Congress, find out how banks are stepping through a minefield of legislation to gain access to this exploding revenue stream.
