A federal judge in Colorado on Jan. 5 dismissed a lawsuit filed by a Colorado-based credit union.
Judge R. Brooke Jackson dismissed the suit by Fourth Corner Credit Union against the Federal Reserve after the Fed denied the fledgling credit union a master account.
The issue behind the denial was that Fourth Corner was chartered with the intent to serve legitimate cannabis businesses. While it is chartered in Colorado, Fourth Corner cannot provide checking services to its members as a result of the Fed's denial.
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Jackson said Congress must act to provide an answer for how to deal with banking services to the marijuana industry.
"This ruling sends a message loud and clear – Congress must act," Aaron Smith, executive director of the National Cannabis Industry Association, said in a statement. "There's no shortcut, there's no Band-aid, there's no work-around to fix this industry-wide.
"Forcing cannabis businesses to operate without banking access is a crisis, affecting public safety, law-abiding businesses, and the state officials in charge of regulating them. It's time for Congress to do its job and fix the problem," he added.
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