California Report on Cannabis Banking Feisablilty
California Report on Cannabis Banking Feisablilty
At a public hearing at the California State Capitol this afternoon, the Cannabis Banking Working Group (CBWG), chaired by California State Treasurer John Chiang, was presented with the results of an independent study that found that establishment of a public cannabis bank would pose too great of a legal and financial risk to the State of California. “While today’s announcement may not lay out the path some of us had hoped, it did reinforce the inconvenient reality that a definitive solution will remain elusive until the federal government takes action — they must either remove cannabis from its official list of banned narcotics or approve safe harbor legislation that protects banks serving cannabis businesses from prosecution,” Treasurer Chiang stated at today’s hearing. “Red, blue, and purple states — 33 so far — have legalized the adult use of recreational or medicinal cannabis. So it’s finally time that the slow, clunky machinery of the federal government work, in a bipartisan fashion, to change federal law to reflect the values and growing consensus of the people it serves.” Following the passage of Proposition 64 in 2016 and the subsequent legalization of the sale and distribution of recreational cannabis that began on January 1, 2018, many of California’s cannabis businesses were left in a legal limbo, where they were classified as legal by the State of California, but still illegal by the federal government, since federal law categorizes cannabis as a Schedule 1 drug.
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