Why 2021 Should Prove The Year Of Federal Cannabis Legalization benzinga.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from benzinga.com Daily Mail and Mail on Sunday newspapers.
Discrepancies between federal and state laws discourage banks from serving the highly profitable and legal cannabis industry.
U.S. cannabis companies generated more than $17.5 billion of sales in 2020 alone. It will only continue to grow as more legal markets open.
There are 36 states that have legalized cannabis for medical or adult recreational use. But it is not legal at the federal level. Meager guidance from regulators leaves banks dubious about whether they can safely bank cannabis businesses and other companies that provide them with products and services.
While federal authorities have said they will not override state cannabis laws, for banks it is very complicated and many fear excessive rules, compliance burdens, missteps and sanctions. This keeps most banks and credit unions from working with the industry. There were 515 banks and 169 credit unions that provided some level of service to cannabis-related businesses by the end of 2020, according to Financial Crimes E
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