California decides against state-chartered banking for marijuana industry

California lawmakers shelved a plan that would have allowed private banks to handle the money being generated by the legal cannabis industry.

The proposal was put on ice after a legislative analysis determined it would face significant obstacles, including a lack of protection for state banks from federal law enforcement, the Los Angeles Times reported.

The analysis cautioned that a side effect of SB 930 might be a pooling of cannabis business assets into the willing banks, which could create an easy target for federal law enforcement.

The proposed bill would have allowed the state to license privately financed banks to dole out checks to cannabis companies to pay rent and state and local taxes, as well as handle other routine business expenses.

Several other states in the cannabis industry also are attempting to work out banking solutions, but a successful model has yet to be developed that every market with legal cannabis can use.

8 comments on “California decides against state-chartered banking for marijuana industry
  1. Ted Stevens on

    Meanwhile,

    Bank of America Merril Lynch finances 3.8 billion for a *Canadian* cannabis company. Great job US Federal lawmakers! Let’s keep ignoring how extremely competitive California would be in the global market here!

    Reply
      • Carol on

        Thought Recreational goes into effect Oct 17 in Canada? Many States like WA, CO, NV, CA, Etc already have recreational pot laws, so if you live in one of those States it doesn’t suck to be in America.

        Reply
  2. Doc on

    Once again the racist cracker from Alabama overrules the overwhelming will of the American people.

    The last thing Sessions learned about cannabis was watching the movie “Reefer Madness.”

    Reply
  3. ENQUAN HE on

    We understand the cannabis industry in the world and other states in the United States. I think the California government should provide a broad environment for the cannabis industry as soon as possible. Otherwise, the cannabis industry in California will lose many business opportunities and competitiveness.

    Reply
  4. mike on

    have to agree that putting all in easily seized baskets is crazy since this trump admin has shown they respect nothing that does not gain more wealth for them and cronies. example is grabbing babies at the border where people have foolishly fled thinking trump will be reasonable rather than just using the border gatherings to seize babies like they would do to the pot banking assets.

    Reply

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