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ReadersSpeak
Are states rights on the horizon for marijuana businesses? thorities might punish them for
violating money-laundering laws,
e received the following perspective from Josh Herndon, an attor- as well as other federal statutes and
ney at Global Legal Law Firm: regulations. That, in turn, has pre-
vented marijuana businesses from
W Marijuana is currently listed as a federally controlled substance opening and maintaining bank ac-
in the Controlled Substances Act (CSA). That, in turn, has negatively impacted counts, obtaining capital invest-
marijuana businesses, which have been forced to conduct business almost en- ments and loans, and accepting debit
tirely in cash. That is because banks (which are federally regulated) have been and credit cards.
reluctant to provide services to marijuana businesses for fear that federal au-
However, the Strengthening the Tenth
Amendment Through Entrusting States
(STATES) Act would amend the CSA
and remove marijuana from the
schedule of drugs that are illegal in
states that have legalized recreation-
al and/or medicinal marijuana, such
as California and Colorado. In es-
sence, the act would end the federal
prohibition of marijuana in states
where recreational and/or medicinal
marijuana is legal.
If the STATES Act passes, it will be
enormously beneficial to marijuana
businesses because banks and finan-
cial institutions in states that have
legalized recreational and/or medic-
inal marijuana will be free to work
with and offer services to any canna-
bis business that complies with the
laws of those states.
Although the status of the STATES
Act is uncertain, President Trump
has indicated he supports the rights
of states to legalize marijuana, even
though such rights are opposed by
elected officials in his own party.
Interestingly, the act has exposed a
rift between Republican elected of-
ficials who oppose legalization and
growing numbers of rank-and-file
Republicans who favor federal pro-
tections such as the STATES Act for
their states' marijuana businesses.
Stay tuned for future developments
concerning this act.
Do you have an opinion to share?
We appreciate Josh Herndon for
sending in this note on pending
legislation that could dramatically
affect the payments industry's ability
to process payments for cannabis-
related businesses. Why not send
in your opinions, too? Please send
up to 300 words for this page to
editor@greensheet.com.
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