A district judge dismissed a lawsuit filed by a credit union against the U.S. Federal Reserve Bank of Kansas City that sought to provide banking services to the legal marijuana industry. The judge denied Fourth Corner Credit Union access to the country’s financial system saying that cannabis still remained illegal under federal law.
The credit union, authorized by Colorado in 2014, does not have permission to take deposits or issue credit, forcing most marijuana businesses to operate on a cash-only basis, raising robbery concerns. Colorado legalized recreational marijuana in 2012.
The Federal Reserve’s lawyers had reportedly said that allowing marijuana businesses access to the nation's banking system would be too dangerous.
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