Cannabis Industry Banking Hopes Crushed By Federal Reserve

TFCCU's first branch is located at 1275 Tremont Place, Denver, Colorado.
TFCCU’s first branch is located at 1275 Tremont Place, Denver, Colorado.

The on-going battle to get banking in Colorado hit a huge snag today when the Federal Reserve filed a motion in the case brought by The Fourth Corner Credit Union, which was chartered by the State of Colorado Division of Financial Services on November 19, 2014 but saw its efforts stymied this summer when the Federal Reserve Bank of Kansas City wouldn’t grant it a master account.

The Federal Reserve — the guardian of the U.S. banking system — said in a court filing Wednesday that it doesn’t intend to accept a penny connected to the sale of pot because the drug remains illegal under federal law.

The stance appears to mark a shift in the position of the federal government. Last year, the U.S. Treasury Department issued rules for how banks can accept pot money.

Fourth Corner CEO Deirdra A. O’Gorman maintained her optimism:

We’ll be able to figure this out sooner rather than later.


Read Kristen Wyatt’s “Feds Block Push by Colorado to Create Pot Bank”:

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

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