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Federal Judge Dismisses Marijuana Credit Union Lawsuit Against The Federal Reserve

Robert Celt

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A federal judge day dismissed a lawsuit filed by the Fourth Corner Credit Union against the Federal Reserve in hopes of providing banking services to the legal cannabis industry. In his ruling, Judge R. Brooke Jackson said Congress must provide the answer, stating, "I regard the [cannabis banking] situation as untenable and hope that it will soon be addressed and resolved by Congress."

Fourth Corner is a credit union chartered by the State of Colorado and designed to serve legitimate cannabis businesses, but the Federal Reserve had denied its request for a master account, which would have allowed them to provide checking services to its members.

The U.S. Department of Justice has issued guidelines on how banks can work with legal marijuana businesses, making it clear that prosecutors would not pursue investigations unless certain conditions were not met, reported The Denver Post. But Jackson said he could not take that tack.

"These guidance documents simply suggest that prosecutors and bank regulators might 'look the other way' if financial institutions don't mind violating the law," Jackson wrote. "A federal court cannot look the other way."

"This ruling sends a message loud and clear — Congress must act," said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). "There's no shortcut, there's no band-aid, there's no work-around to fix this industry-wide.

"Forcing cannabis businesses to operate without banking access is a crisis, affecting public safety, law-abiding businesses, and the state officials in charge of regulating them. It's time for Congress to do its job and fix the problem."



News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Federal Judge Dismisses Marijuana Credit Union Lawsuit Against The Federal Reserve
Author: Steve Lee
Contact: LGBT Weekly
Photo Credit: Mandel Ngan
Website: LGBT Weekly
 
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