Lawmakers on both sides of the aisle said Wednesday that federal law prohibiting cash-only cannabis businesses from using banks must be changed.
Despite recreational marijuana being legal in 18 states and the District of Columbia, it is still classified as a Schedule I narcotic under federal law. Banks that provide services to cannabis companies — even in states where they operate legally — can face federal charges, which forces cannabis growers, distributors and retailers to perform all transactions in cash.
“If you really wanted to create an industry that’s dependent on gangs and cartels, make it all cash. It’s almost like the system that is there now is oriented towards promoting things that we don’t want,” said Sen. John Hickenlooper (D-Colo.), speaking at The Hill’s Regulating Cannabis event.
Hickenlooper, who was governor of Colorado in 2012 when voters legalized marijuana statewide, has long advocated for decriminalizing cannabis. He called the cash-only system “a recipe for disaster” and a “blueprint for catastrophe.”
“If you de-schedule it, banks can start banking it so it’s no longer a cash business. There are multiple negative consequences of having it be a cash business. One is that businesses themselves can’t get loans.” Hickenlooper told The Hill’s Steve Clemons. [Read more at The Hill]
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Notify me of follow-up comments by email.
Notify me of new posts by email.
by Mia Getlin – Partner, Gleam Law We previously reported that, in early November 2021, the Oregon Liquor and Cannabis Commission (OLCC) announced that the agency had lifted its pause on issuing new non-producer recreational marijuana licenses and would immediately begin processing new applications for retail, processor, and wholesaler licenses. Additionally, the agency began contacting people…
A headstrong grower is a cultivator that believes their way is the only way to grow. They won’t consider other cultivation methods, and they’re particular about the equipment, technology, and inputs they use. In my experience, this stubbornness is rooted in insecurity. Growers that claim their way is the only way are really saying, “This…
Licensed marijuana firms cannot legally move pot products across state lines. But that doesn’t mean they’ve been spared the supply chain disruptions wreaking havoc on the rest of the business world. As the Omicron variant surges, Massachusetts cannabis companies are facing significant shortages of foreign-made packaging and construction materials that are essential to their operations, including…
SALT LAKE CITY (AP) — Since 2020, the state’s medical cannabis program has seen substantial growth. An annual report last year found that the number of active cardholders more than tripled, and pharmacies in the state more than doubled. But despite the expansion of the program, patients are having a difficult time accessing the medicine…