Processing payments is a persistent challenge for marijuana retailers. Federal cannabis prohibition means banks are unwilling to service dispensaries which has led to many operating on a cash-only basis. Not only is this inconvenient for customers, it also puts cannabis dispensaries at greater risk of burglary, which drives up insurance costs. What’s more, dealing primarily
The US cannabis industry continues to grow rapidly, with sales topping $26 billion last year and projected to almost double to $50 billion by 2026, according to Forbes. Marijuana is big business now, and it got to this point despite being largely underserved by banks and other financial institutions due to federal cannabis prohibition. But
Owing to marijuana’s federally illegal status, most banks are unwilling to work with cannabis businesses for fear of federal government reprisals. This means that many marijuana retailers operate on a cash-only basis. This not only increases a business’ operating costs, it also increases the risk of robberies. As a result, many dispensaries have turned to
A bicameral conference committee removed provisions from a defense spending bill that would have afforded protections to financial institutions that service state-legal marijuana businesses. The House included the Secure and Fair Enforcement (SAFE) Banking Act as an amendment in its version of the National Defense Authorization Act (NDAA), which it passed in September. This marked
The federal prohibition of cannabis makes payment processing more complicated than in traditional retail industries. This is because financial service providers are reluctant to work with marijuana businesses, even in states where cannabis is legal, for fear of federal reprisals. The consequences of this for cannabis retailers are significant. Consumers generally prefer to pay by
A bipartisan group of senators sent a letter urging Senate leadership to retain provisions in a national defense spending bill which would shield banks that provide services to state-legal cannabis businesses from federal interference. The bill – the National Defense Authorization Act (NDAA) – was passed by the House in September and included provisions from
A top Internal Revenue Services (IRS) official said the agency’s job would be a lot easier if banks could offer their services to state-legal marijuana businesses without fear of federal reprisals. Susan Collins, who serves as senior counsel in the IRS Office of Chief Counsel, made the comments during an event organized by UCLA’s Annual
The governor of Colorado wrote a letter to the senators behind a bill to federally legalize cannabis asking they first prioritize marijuana banking and tax reforms, in order to safeguard the interests of state-legal markets and businesses. Gov. Jared Polis (D) made clear he supports the Cannabis Administration and Opportunity Act (CAOA), sponsored by Senate
Cannabis and crypto were the topic of the day at a recent seminar hosted by the Internal Revenue Service (IRS). Led by a representative of the National Association of Tax Professionals (NATP), the seminar discussed an array of issues, including the different approaches states have taken to regulate cannabis and what kind of deductions are
