Cannabis has changed at the state level but has yet to change at the Federal level. It is fascinating to watch the legalization of cannabis roll out just on that alone. It defines the disconnect between business, laws, and Government.
Legally, cannabis has sold $22B (yes billion) in 2021. To give some other $22B examples. Facebook spends roughly a year on acquisitions, Exxon lost $22B in 2020, companies have gone public with caps of $22B. Here is the thing about cannabis, because the Federal Government has not figured this out, the industry is completely locked out of the banking industry. Plenty of cash in vaults but not in banks.
Keep in mind that this number does not include illegal sales where we will never see tax money flow back to the state. The crimes committed against legal cannabis stores are scary. I have heard a few doozies, and crime these days seems to be getting worse.
The hurdle, not shocking, is pure politics. 68% of Americans support the legalization of cannabis, and it is happening state by state at a rapid rate. Even Janet Yellin expressed support for cannabis companies to use a bank. Wouldn’t it make sense if there is no cash in stores and everything is bought with a debit card, Venmo, or crypto?
Eventually, there will be a revolt against the highest taxes imposed on cannabis products. Perhaps with banking, this will change. If you follow this world, cannabis will continue to be a tremendous boon for the economy. As more and more doctors and scientists do research that has been put on ice for decades, we are seeing endless positive health benefits with this weed.
It is time to pass a bill to give cannabis companies the ability to use banks. Enough already.