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Table of Contents

Lead Story

Retail disruptors redefine commerce

Ann Train

News

Industry Update

News Briefs

Views

Cashless and cashier-less: a revolution in the making?

Patti Murphy
ProScribes Inc.

The Green Sheet, CCSalesPro start new podcast series

Education

Street SmartsSM:
Let's stir things up a bit

Steve Norell
US Merchant Services Inc.

Nourish sales and exfoliate fraud: Combatting beauty fraud

Don Bush
Kount Inc.

What does cryptocurrency mean for ISOs?

Jordan Olivas
RS Software Inc.

Your merchants are flying blind

Barry Davis
Womply

Company Profile

HPS Worldwide

New Products

Cloud-based EMV solution improves transaction speed, security

Cloud EMV
Clearent LLC

Prevent chargebacks with curated intelligence, automated alerts

Prevention Alerts
Chargeback Gurus Inc.

Inspiration

Silence is power

Departments

Letter from the editors

Readers Speak

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

July 09, 2018  •  Issue 18:07:01

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Readers Speak

Are states rights on the horizon for marijuana businesses?

We received the following perspective from Josh Herndon, an attorney at Global Legal Law Firm:

Marijuana is currently listed as a federally controlled substance in the Controlled Substances Act (CSA). That, in turn, has negatively impacted marijuana businesses, which have been forced to conduct business almost entirely in cash. That is because banks (which are federally regulated) have been reluctant to provide services to marijuana businesses for fear that federal authorities might punish them for violating money-laundering laws, as well as other federal statutes and regulations. That, in turn, has prevented marijuana businesses from opening and maintaining bank accounts, obtaining capital investments and loans, and accepting debit and credit cards.

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 recreational and/or medicinal marijuana, such as California and Colorado. In essence, 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 financial institutions in states that have legalized recreational and/or medicinal marijuana will be free to work with and offer services to any cannabis 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 officials who oppose legalization and growing numbers of rank-and-file Republicans who favor federal protections 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.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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