Marijuana Industry To Get A Financial Boost

Despite shifting public perception and legalization efforts, growth in the U.S.'s marijuana industry has been stifled by conflicting laws.

Though more states are making the drug legal, entrepreneurs have struggled to create long-lasting companies, as federal law still classifies cannabis as a criminal substance. That discrepancy has made everything from law enforcement to quality control problematic for industry participants.

However, marijuana supporters received a major victory this week after the U.S. Senate approved a measure that will make it easier for marijuana businesses to engage with banks.

All Cash

At the moment, small business owners whose firms are dealing in marijuana struggle to secure loans and even open a bank account. As banks are bound by federal laws, which still class marijuana as illegal, simple daily operations like payroll are made difficult for cannabis firms.

For that reason, the marijuana industry has become a risky one due to the high volume of cash that dispensaries keep on hand.

Related Link: Marijuana's Role In The Insurance Industry

Easing Regulations

The new measure will relax some of the laws that make it illegal for banks to handle money generated by marijuana sales. Under the new rules, banks can engage with pot-based firms without worrying about federal mandates.

Times Are Changing

The decision to pass the amendment represents a shifting tied in Washington, where lawmakers have been hesitant to take a stand on marijuana. However, the issue has gained traction among voters and will eventually need to be addressed by the nation's policymakers.