Cannabis banking working group
Non cultivation working group 5/9/2019
As California’s recreational market enters its second year, the study puts an end to expectations that the state will find a way to get around banking barriers for marijuana businesses. In January, a working group led by state Treasurer John Chiang commissioned a report from a San Diego-based company. Earlier this year, state lawmakers defeated legislation to establish a state-backed bank.
“While today’s announcement may not have laid out the course some of us had hoped for,” Chiang said, “it did reinforce the uncomfortable reality that a conclusive solution would remain elusive until the federal government acts.” “They must either exempt cannabis from the official list of prohibited drugs or pass safe harbor legislation protecting banks that serve cannabis companies from prosecution.”
Many banks are wary of breaking federal law by doing business with the marijuana industry, but some do. As a result, marijuana companies are forced to trade in large amounts of cash, posing a security risk.
This la startup is launching a b2b digital payments for pot
The cannabis industry’s hopes for California to create a bank for the industry were dashed Thursday when a long-awaited study said such a move would put state funds and employees at risk, with no assurance of success.
When state lawmakers reconvene in Sacramento in January, the findings of the 151-page study presented to a cannabis banking working group headed by state Treasurer John Chiang will derail efforts to create a public bank for marijuana companies.
“We went in to try to figure out a way to make it work,” said William Roetzheim, the founder of Level 4 Ventures, a San Diego-based business analytics company that researched the viability of cannabis banking before writing a report and submitting it to the state working group on Thursday. “Every single channel we pursued through the collection of possibilities ended up in a dead end.”
“While today’s announcement could not set out the direction some of us had hoped for, it did reinforce the uncomfortable reality that a concrete solution would remain elusive until the federal government acts,” Chiang said at his working group’s last meeting. “They must either exempt cannabis from the official list of prohibited drugs or pass safe harbor legislation protecting banks that serve cannabis companies from prosecution.”
Matt cate speaks at the cannabis banking working group
Kirk Anderson, chief operating officer for CannaCraft, Santa Rosa’s largest cannabis company, will be one of the panelists, with cannabinoid extraction and processing operations on Circadian Way and a planned new cultivation and transportation venture on Circadian Way and Giffen Avenue nearby.
A former banking examiner from the Federal Reserve Bank of San Francisco and Lamine Zarrad, CEO and founder of Tokken, a Denver-based mobile-payment business that supports the cannabis industry, are among the other speakers.
Conflicts between state and federal law create problems including tax collection and the possibility of violence, according to Chiang, who noted that the state expects tax revenues from the new industry to reach $1 billion per year.
“We have a year to build a mechanism that works in California and tackles the many problems that have arisen as a result of the federal-state conflict,” Chiang said. Uncertainty about your administration’s stance makes it much more difficult.”
February 10, 2017 // cannabis banking working group
Other solutions considered and found to be unfeasible—because they would also violate current federal law—included a public credit union, the state acquisition of a private bank, and numerous so-called “fintech” solutions that would try to solve the problem by relying on such transactional resources as cryptocurrencies, according to yesterday’s presentation.
The federal government, according to Chiang, “must either withdraw cannabis from its official list of banned drugs or authorize safe harbor legislation that protects banks servicing cannabis companies from prosecution.”