Banks in “red” states are starting to open their doors to the cannabis industry. And when marijuana entrepreneurs can access traditional finance services, it will mean big things for your cannabis investments…
You’ve heard me talk a lot about the trouble U.S. cannabis companies have with the banking sector. As you know, cannabis is still illegal under federal law, and banks don’t want to be accused of working with an “illicit” business.
Today, I want to make sure you know why I’m releasing so many cannabis banking reports.
It’s part of a story that I’m following closely because it’s got massive implications for cannabis investors…
Cannabis Isn’t the “Wild West” – It’s the “Old West”
The marijuana sector has a bit of freewheeling reputation – and some segments are wildly speculative right now. But we have American history as a guide here…
Right now, we are in the “land rush” stage, where companies are staking their claim in what could be a $1 trillion market. After that, we’re going to reach the “settlement” stage, and that is when we will see a number of major changes, including banking reform.
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Finally, we’ll reach the “maturity” stage – full statehood, if you will – and that’s when early investors could be the ones to sit back and count their riches.
Now, it’s true there are examples of banks working with cannabis companies and statewide programs trying to get established.
In California, for example, there’s a push to make banking access more available to cannabis companies. Hardcar Security started working on a pilot program in 2017 that helped the largest cannabis accounts in California deposit money. Hardcar deposited cash in the Federal Reserve Bank of San Francisco for large accounts, according to Green Market Report.
The Golden State has a ton of money to spend – California was the world’s fifth largest economy in 2018 – and cannabis consumption is ingrained in the state’s culture.
You would think that if any cannabis business would need to work with a bank to handle large amounts of cash, it would be in California. However, they are having a rocky start to legalization, and the industry isn’t as large as state politicians expected – yet.
But what’s really encouraging is smaller banks in conservative “red” states pushing to make banking easier for marijuana entrepreneurs, like a small bank in Arkansas I recently told everyone about.
But now, there’s something even bigger brewing in West Virginia…
West Virginia Could Be a Red State Template
The Republican-dominated West Virginia House of Delegates overwhelmingly approved a bill on Feb. 15 that would allow banks to work with medical marijuana companies.
It’s admirably transparent – something cannabis investors should appreciate.
The legislation would authorize the Mountain State to open a bidding process for financial institutions and banks that want to work with medical cannabis companies and are willing to process the fees, penalties, and taxes collected under the state’s medical program.
The bill would also ensure that federal prosecutors will not interfere with banks and financial institutions working with medical cannabis companies that follow state law. With medical cannabis products slated to hit the shelves in West Virginia on July 1, I expect we’re going to see cannabis banking frameworks set up sooner rather than later.
There are going to be a few kinks to work out, but it will set an example of how a “red” state could establish a legal cannabis system with proper regulations and oversight.
And remember, the bankers working with medical companies now are gaining invaluable experience.
The West Virginia approach, with banks collecting taxes and fees, also reinforces something our advisory board member John Vardaman told us last month about why cryptocurrencies will never be an important part of cannabis finance – regulators want money to be attached to banks because that is who they trust.
When full legalization hits the United States, the banks and financial institutions who worked with medical cannabis clients early will reap the full financial benefits… along with their shareholders.
America’s Green Gold Rush Is Just Getting Started – Claim Your Stake Now
At this very moment, big investment firms and members of the Fortune 500 are building enormous war chests.
They’re preparing to push billions upon billions of dollars into the cannabis market – and they could strike at any moment. So right here – right now – you have a once-in-a-lifetime opportunity to beat them to the punch and stake your claim.
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