California’s state treasurer has assembled a group to address the problems caused by banks’ refusal to deal with marijuana businesses, following up on his state’s legalization of recreational cannabis in the Nov. 8 election.
State Treasurer John Chiang also sent a letter to President-elect Donald Trump and included members of California’s congressional delegation asking for help to fix the problem, according to the Los Angeles Times.
In the letter, Chiang pointed out that the divide between federal and state rules causes issues for the states where marijuana is legal, including tax problems, security concerns and the hurdles the newly formed industry faces when it comes to financing and commerce.
The vote by California voters to approve adult-use marijuana opens up a massive new cannabis market, a move that some analysts see as the tipping point for federal marijuana reform.
California’s recreational cannabis industry could eventually generate $4.5 billion-$5 billion in annual retail sales, according to Marijuana Business Daily estimates.