Cannabis-Friendly States Want Meeting With Jeff SessionsThe Associated PressMarch 30, 2018
Marijuana is illegal at the federal level, even as 29 states have legalized cannabis in some form.
State treasurers from California, Oregon, Illinois and Pennsylvania told Sessions in a letter Thursday that businesses and banks need greater clarity on how federal law enforcement will respond to the growing legalization trend.
A shortage of banking services in California's emerging marijuana industry is seen as a major obstacle to developing a thriving, regulated marketplace.
The Trump administration lifted an Obama-era policy in January that kept federal authorities from cracking down on the cannabis trade in states where the drug is legal.
The letter, released by California Treasurer John Chiang, said the absence of those federal rules “leaves the industry and financial institutions in the dark.”
A shortage of banking services in California’s emerging marijuana industry is seen as a major obstacle to developing a thriving, regulated marketplace.
Legal sales for adults kicked off in the state on Jan. 1, but many banks don’t want anything to do with cannabis money for fear it could expose them to legal trouble from the federal government.
That’s left many businesses to operate largely in cash, which can make them a target for theft while posing risks for cannabis workers and the public.
Financial institutions need “some comfort that they will not be prosecuted, or lose access to customer assets, simply for banking this industry,” said the letter, also signed by several cannabis industry groups and the Maine Credit Union League.
Congress this month extended restrictions that prevent the Justice Department from prosecuting medical marijuana cases in legal-cannabis states.
Chiang, a Democratic candidate for governor, earlier formed a task force in an attempt to resolve banking problems for the marijuana industry.