New Rules Coming for Banks and Pot Money

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Jan. 24 (Bloomberg) –- Drug Policy Alliance Executive Director Ethan Nadelmann discusses new rules coming from the Treasury department where pot merchants will be able to set up bank accounts for their businesses. He speaks to Matt Miller and Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

To change.

Eric holder said that the treasury and law-enforcement agencies will issue regulation opening banking services to state sanctioned marijuana businesses.

We are joined by the executive director director of the drug policy alliance.

This is a big deal.

It has been the number one issue with the marijuana industry as it he comes increasingly legal.

These businesses are millions of dollars and having to take everything in cash.

They go through the new york times about the issues they are dealing with.

For the treasury to say that our part of the deal -- you must regulate this in a responsible way -- why do we always use this video of tattoo'd punk rockers?

We need a yuppie family passing around a joing.

T. i was at high times festival.

It will be more of a mainstream thing.

Like having a glass of wine.

People shift to vaporizers and middle-class people -- it is not the alternative set.

I think it is time for new -- if you have a legitimate industry with banks that can accept the money, you will make it -- and credit card and debit cards.

Lex spending time in colorado talking to these guys, their biggest frustration is that they have no way to deal with things like payroll.

They have no way to deal with the money that they have.

If they have a bank account, they never tell the bank what they are doing.

They can't. we are in this multiyear transition what was this entirely underground market with criminals and money laundering and evolving it into an entirely legal industry.

Colorado and washington are at the forefront.

Others will be going next.

I have been on your show slamming the obama administration but they are really acting in good faith.

One of the things challenging in colorado is that eric holder will say something and the next thing you know, somebody is getting busted in colorado.

They say they are going to observe the state law, but are they really?

Congress needs to act.

Figure out what they can do.

Federal prosecutors still have some discretion.

It is hard to say that the federal prosecutor can't enforce federal law.

What might the new regulation look like?

Tell prosecutors that if people are operating under state law, they will be saying to state regulars and banks that as long as there is no reason to believe that this marijuana industry is involved in other types of criminal activity, it should be ok.

Why should it be any different than someone operating a liquor store?

Only because of federal law.

Are there real parallels between this and the end of actual prohibition?

Yes and no.

States led the way, but the states did not set up legal alcohol regulatory systems and allow it to be sold legally until 1933. they just told the feds that we are out of enforcing it.

California and colorado are more responsible.

He could they are trying to set up a regulatory system.

Public health, public safety issues.

If the fed will not figure this out, we will regulate in a responsible way.

They police the weed, watch the growers.

If they are selling edible marijuana products, conforming with safety and health standards.

A lot of this is industry imposed because they want to see it go legit.

I don't know if i told you this story.

One of the things i found remarkable was that when they accept cash in a dispensary, they take the cash and put it in

This text has been automatically generated. It may not be 100% accurate.


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