Recreational marijuana might be having its moment, but that doesn’t mean that all the kinks are worked out. Because of laws that still classify it as an illicit substance on the federal level, the banking industry has yet to warm up to the burgeoning weed business for fear of criminal liability.
To alleviate those fears, a bipartisan group of 18 attorneys general from states with recreational and medical marijuana wants to bring the industry’s financial side out of the shadows, and they’re asking Congress for help in a new letter:
The grey market makes it more difficult to track revenues for taxation purposes, contributes to a public safety threat as cash intensive businesses are often targets for criminal activity, and prevents proper tracking of large swaths of finances across the nation.
To address these challenges, we are requesting legislation that would provide a safe harbor for depository institutions that provide a financial product or service to a covered business in a state that has implemented laws and regulations that ensure accountability in the marijuana industry such as the SAFE Banking Act (S. 1152 and H.R. 2215) or similar legislation.
This would bring billions of dollars into the banking sector, and give law enforcement the ability to monitor these transactions.
Full Article / Source: www.techcrunch.com