Federal Judge Considering Marijuana Banking Case Today

[Robert Celt]

One of legal marijuana's biggest hurdles will be discussed this morning as a federal judge considers a Colorado credit union's arguments for allowing marijuana banking services. Fourth Corner Credit Union, which was "constructed from the ground up to serve the interests of the legalized cannabis and hemp industries and their supporters," according to its website, was set to open in early 2015 after receiving support from Governor John Hickenlooper. But the credit union has never opened, thanks to a rejection from the Federal Reserve's Kansas City Branch when the FCCU applied for a master account to put money in the U.S. central banking system — something the fed says is out of bounds because of marijuana's federally illegal status. The FCCU sued the fed in July, requesting that the U.S. District Court in Colorado grant the bank a master account with the Federal Reserve.

Despite guidelines from federal banking regulators on how to accept money from legal marijuana, financial institutions have widely stayed away from pot businesses out of fear of federal racketeering charges. The FCCU received its charter from the state in 2014 and has been trying to gain approval from federal regulators ever since. The next step is today's hearing before U.S. District Judge R. Brooke Jackson, who has no deadline for issuing a decision.

News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Federal Judge Considering Marijuana Banking Case Today
Author: Thomas Mitchell
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