Access to banking remains a major hurdle for cannabis business operators. In Colorado, the first state to fully legalize and one with a long history of regulated medical cannabis, efforts to address it have so far failed. Canna Law Group lawyer Neal Gidvani believes that Nevada may have a potential solution:
Nevada’s Assembly Bill 480 would allow Nevada thrift companies to obtain their required deposit insurance from private carriers, rather than from the FDIC, potentially reducing the regulatory hurdles needed to provide financial services to MMEs. Traditional financial institutions must have their deposits insured by the FDIC. Without access to federal guarantees, nationwide banking is effectively impossible for much of the pot industry. However, thrift companies (and credit unions) have the option of having their deposits insured either by FDIC/NCUA or a “private deposit insurer” approved by the Nevada Financial Institutions Divisions (FID) Commissioner. In turn, AB 480 is a fairly significant development where any removal of federal authority from the banking process makes life easier for financial institutions wanting to do business in the marijuana industry.
While it’s too early to assume that this will pan out, Gidvani explains the concept well and details how it would work.
Read Neal Gidvani’s “New Nevada Thrift Law May Hold the Key to Cannabis Banking”: http://www.cannalawblog.com/new-nevada-thrift-law-may-hold-the-key-to-cannabis-banking
Are you a cannabis industry thought leader and want to be heard? Let us know your story.