Monday, June 11, 2018

Fed jumps ahead of DOJ in approving banking institution that caters to ancillary marijuana businesses

While the Department of Justice (DOJ) has held back investigating or indicting state's that have approved marijuana legalization, they have as yet not chosen to enact any real regulatory approval for businesses that cater in cannabis.  Thus this relative 'silence' on the issue has made it near impossible for cannabis businesses to be able to function within the banking system.

However that may soon be changing as not only has the state of California proposed the institution of a state bank to cater to these businesses, but now the Federal Reserve itself has approved a master account for a Credit Union that currently does business with ancillary cannabis companies.

As new Fed Chairman Jerome Powell was taking his seat at the head of America’s central bank amid a market meltdown earlier this year, a big decision in favor of the marijuana industry got buried in all the noise. 
Turns out the Fed greenlighted a new marijuana business. 
The Federal Reserve approved a master account for Fourth Corner Credit Union, a new Colorado-based financial institution that will cater specifically to cannabis-related companies. 
It’s been a long road for Fourth Corner. In total, the firm had to lobby the Fed for some 40 months before finally getting approval for a master account, the tie-in to the Federal Reserve that banks need to operate. – Daily Reckoning
In the past the Federal government was able to implement strict laws against the production, sale, and use of cannabis because the majority of Americans disdained the plant out of moralistic ideologies.  However now that the pendulum has shifted, and where that same majority is much more for marijuana legalization than against it, Washington is fighting a losing battle by not fully legalizing it and removing it from the Drug Schedule. And until they do, it will mean that they become the big losers because of the potential loss of tax revenues as well as individuals and businesses still using other means of financial processing outside the banks.

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