Colorado Credit Union Seeks Approval for Cannabis Services

Until recently, cannabis businesses had to rely on cash transactions because they couldn’t use the federal banking system for their transactions. However, a credit union in Colorado is planning to change this by allowing payments through regular banking methods. This change would also apply to places selling products like Dab Rigs and Oil Rigs.

This week, two lawsuits were filed in Denver challenging the recent decisions by the U.S. Federal Reserve and the National Credit Union Administration. These agencies denied Fourth Corner Credit Union’s applications. Established last year, this credit union sought to serve Colorado’s marijuana industry and related companies but needed approvals from federal insurers and regulators to start operations.

Unfortunately, the Federal Reserve turned down Fourth Corner’s application earlier this month. As a result, many cannabis businesses must continue using complex banking alternatives, such as paying bills with money orders or using air fresheners on cash to avoid detection.