Humans have a difficult time imagining large numbers, which is why it’s sometimes overwhelming for some to think about the cannabis industry. Without access to financial services in the U.S., legal cannabis brings in $10 billion and 99.9% of those transactions are in cash. Literally, billions of dollars trade hands every year, and there’s no
Michigan’s cannabis industry is blooming, and local banks are beginning to bank cannabis funds to help the industry reach new heights. The State of Michigan has been developing its cannabis regulations for over a decade, starting with legalizing medical cannabis in 2008 and continuing in 2018 by legalizing adult-use cannabis and at-home cultivation. Though acceptance
Banks and investment capital finally have an avenue into the hemp industry with a recent change to federal regulation. Shortly before Christmas, the 2018 Congressional Farm Bill was signed into law and has now already taken effect. That bill included provisions that effectively legalize the production of hemp in the U.S. by distinguishing it from
The latest push for lifting the federal prohibition of cannabis and paving the way for cannabis business banking services has failed, but the senator behind the measure isn’t backing down. U.S. Sen. Cory Gardner, R-Colorado, has spent nearly a year pushing for the passage of the STATES Act that would give federal permission to the
Who knew cash could be so expensive? The IRS recently paid a consulting company $1.7 million to help process the billions of dollars in taxes that cannabis businesses were paying … in cash. Most businesses write a check when they pay taxes, but federal prohibition continues to prevent many cannabis businesses from getting back accounts.
Billions of dollars flow through the legal cannabis industry every year, much of it cash by necessity, and financial institutions and Wall Street want in. In the U.S., the fear of regulations and reputational damage is continuing to keep many investors out of this market. But that isn’t the case everywhere. Over 30 states have
The American Bankers Association (ABA) is reaching out to its members to learn more about their operational struggles working with the cannabis-related industries across the U.S. Over 30 states in the U.S. have legalized medical or adult-use cannabis in their borders, and the last several election cycles have seen a few more make that decision
Getting a bank account as a cannabis company has remained difficult with federal prohibition still in place, even as more states open the doors for medical and adult-use cannabis. But if you’re in the right state (and willing to go through the paperwork), opening an account is absolutely possible. The key is complete transparency, which
Two steps forward, one step back: That continues to be the story for cannabis banking in California. State legislators keep talking loudly about creating a state-licensed bank to service the cannabis industry, but no bill has yet made it through the long process to become official. The latest attempt was from Sen. Bob Hertzberg of