5 Ways the Federal Government Is Harming the Cannabis Industry
The cannabis industry is in a tough and unique situation. While some states permit full recreational use of marijuana, federally, it remains illegal as a Schedule 1 substance. Not only does that create confusion for investors, businesses, and consumers, it also means that there are still many obstacles preventing the sector from realizing its full potential.
While decriminalizing marijuana could be an important first step in changing federal law, the industry truly needs complete and outright legalization to thrive. And until that happens, it's going to struggle. Here are five ways that marijuana being illegal federally is causing problems for the cannabis sector.
Big banks largely avoid doing business with the cannabis industry because marijuana companies aren't legal businesses in the eyes of the federal government and doing so would expose them to liability. This doesn't mean cannabis companies aren't able to obtain any banking services, but it's a challenge given the potential risk. This is why lawmakers introduced the Secure and Fair Enforcement (SAFE) Act last year, which would protect banks from legal trouble related to doing business with the pot industry. But despite passing the House last September, the bill hasn't moved any further.
Source Fool.com
