Colorado Pot Banking Co-Ops Help Make Cash-Only Weed Biz Legit

Image: Colorado Pot Banking Co-Ops Help Make Cash-Only Weed Biz Legit

Thursday, 08 May 2014 11:06 AM

By Alexandra Ward

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
A Colorado pot banking industry may soon be a reality after state legislators this week approved a series of co-ops to offer financial services and help legitimize the currently cash-only marijuana business.

"We are very happy this legislation passed," Andrew Freedman, the Colorado governor's marijuana coordinator, told The Washington Post. "This gives us an avenue to go to the Federal Reserve and get cash off the street. That was by far our number one priority."

Because pot is still illegal under federal law, and because banks are federally regulated institutions, Colorado's pot industry has been primarily cash-only. But that can pose a problem to growers trying to build a business and to the government when it comes to tracking the product for tax purposes, according to The Post.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

"The so-called 'cannabis credit co-ops' would function like credit unions, allowing licensed marijuana businesses to pool resources, have checking accounts and take out loans," the newspaper noted. "The co-ops would be able to make investments on behalf of their members in municipal bonds and other securities."

Though the measure gained approval from both Republicans and Democrats — and is expected to be signed into law by Colorado Gov. John Hickenlooper — it will only be enacted if the U.S. Federal Reserve signs off on it.

"I've steadfastly maintained that the solution does not lie in this building, but in Washington," state Sen. Pat Steadman, a Democrat, told the Denver Post. "This is a bill we know is imperfect, but it’s something we’re trying to do to force a dialogue on the issue. The status quo for access to financial services is unacceptable."

Urgent: Assess Your Heart Attack Risk in Minutes. Click Here.

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved