WASHINGTON—The future of financial services for marijuana businesses may be brighter if the current nominee for attorney general, William Barr, is confirmed by the
U.S. Senate for the position, asserts JD Supra, a publication that provides “legal intelligence” across a number of industries.
“During his confirmation hearings, although indicating that true clarity on the issue requires action by Congress, Barr signaled that he would likely return to the hands-off enforcement perspective espoused by the Obama administration,” JD Supra reported.
As the number of states that have legalized marijuana continues to rise (at last count, 10 states have legalized recreational use while 33 have authorized medical use), the financial services industry has struggled with how to address the banking needs of the growing—and lucrative—industry, noted JD Supra.
Marijuana remains illegal under the federal Controlled Substances Act (CSA), and financial institutions are prohibited from knowingly providing services to illegal enterprises.
“However, under the Obama administration, the Department of Justice adopted a hands-off federal policy that deferred to state governments, as set forth in the Cole Memo,” noted JD Supra.