July 31, 2015 – The Federal Reserve has recently turned down a Colorado Credit Union application to have a master account which It planned to use to serve the Colorado cannabis industry. As we know, the banking issue is the elephant in the room when it comes to the development of the industry. Per the article, a South Carolina attorney has filed suit to challenge the Reserve’s denial on process issues, but that challenge is probably a long shot. Without a Federal policy change regarding banking, the industry will remain a cash industry with the attendant security and tax collection problems. For the full New York Times article detailing the matter, click here.
Banking for Pot Industry Hits a Roadblock