California treasurer lays out first steps toward state marijuana bank

Following up on a plan he announced last year, California state Treasurer John Chiang on Tuesday outlined the foundation for a public bank for cannabis businesses so they won’t have to operate on a cash-only basis.

According to the San Francisco Chronicle, Chiang and state Attorney General Xavier Becerra have been working in concert on a cost-benefit analysis to figure out if such a venture would actually work.

So far, the plan is to “conduct a feasibility study” in which:
  • The treasurer’s office would focus on costs, benefits and risks.
  • The attorney general’s office would look at legal and regulatory issues surrounding a public MJ bank.

The study would deliver recommendations to policymakers by the end of the year, the Chronicle reported, including on how such a bank would be funded and structured, as well as whether it would have a physical location or operate entirely online.

Chiang, who is running for governor of California, is also working with 19 other states that have legal MJ industries in hopes they could establish similar financial institutions.

However, the jury is still out on whether state-level banking systems will work quickly enough for the cannabis industry or in the long run with marijuana still federally illegal.

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3 comments on “California treasurer lays out first steps toward state marijuana bank
  1. Rick Fague on

    So far every effort I’m aware of to start a state marijuana bank has been stopped dead in its tracks by the fed, which makes me think California might have the same problem.

    It seems to me that all this time and energy would be better spent getting our congressional reps to make it legal but I guess this is one of those issues that’s just going to have to work itself out for better or worse.

  2. Phil F on

    Hi, I am looking for a comprehensive list of California banks that allow accounts to be setup for MM businesses. Is there such a list that exists?

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