Federal Reserve Says it Won’t Allow Cannabis Banking
The U.S. Federal Reserve said in a court filing this week that it will not accept money made from the sale of cannabis because the plant is still considered an illegal drug under federal law.
The filing also asks a judge to dismiss a lawsuit against the agency brought on by a startup credit union hoping to serve marijuana businesses.
The move is another blow to Colorado’s efforts to create a bank for its burgeoning marijuana sector and other attempts elsewhere to provide financial services to the industry.
The filing is the latest salvo in a battle between the