The Marijuana Industry Might Crash Due To Court Ruling

Legal Marijuana Pot Joints Weed Sea of Green

Financing could prove to be just as troublesome for marijuana shops. Most banks and credit unions are unwilling to lend to legal marijuana shops because they have one of two fears. Either they’re worried that the federal government could prosecute them for violating the law (i.e., for laundering money, since the marijuana plant is still illegal federally), or they fear that the federal government will, at some point in the future, reinforce its superseding law over the individual state laws.

If the federal government did so, it would likely wipe out legal marijuana shops’ ability to repay their loans. Also, without a working relationship with banks, some customers are unable to use credit or debit cards to purchase marijuana in legal shops.

Legislation has been proposed in Congress to remove the federal government’s ability to prosecute banks for providing banking services to the marijuana industry, but nothing has gained substantial traction.

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