The Fed’s Turn Away From Colorado’s Marijuana Bank
Colorado’s efforts to develop a financial institution to work with the marijuana industry, which has suffered another setback by the federal government and could be facing an impossible dilemma. The Federal Reserve — the protector of the U.S. banking system — stated in a court filing Wednesday that it does not intend to accept a penny connected to the sale of marijuana because marijuana is still illegal under federal law. The stance appears to mark a shift in the position of the federal government. And we still are left with confusion.”
The filing came in a legal battle between the Federal Reserve and the would-be Fourth Corner Credit Union, which was created this past year to serve Colorado’s $700 million-a-year pot industry.
The credit union can not open without clearance from the Federal Reserve, which said in its filing that “transporting or transmitting funds known to have derived from the distribution of marijuana is illegal.”
Colorado-chartered the Fourth Corner Credit Union after the Treasury Department issued its guidance this past year on marijuana banking. Which was a no go.
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