Legal ambiguity is the main threat to the future expansion of the cannabis industry in the United States, according to a report by Coresight Research.
While eight states have legalized medical and recreational use of marijuana, cannabis production, trade and consumption is still illegal at the federal level in the United States. This prevents cannabis companies from accessing banking services, which are regulated by federal laws and, in general, casts uncertainty on the prospects of the companies operating in the market, given that the legal framework could change.
The threat of federal intervention is the top concern within the American marijuana industry, according to a survey undertaken in 2017 by Marijuana Business Daily. Cannabis businesses cannot access banking services, since banks need to comply with federal laws that still consider cannabis firms’ activities as violations of federal drug laws. Banks could face penalties for enabling marijuana sales transactions.
The report provides an overview of the size and growth of the legal cannabis industry in the United States and highlights the threats to the industry’s growth due to legal ambiguities. And it examines the impact of the legal cannabis industry on the economies of the states that have already legalized recreational marijuana, using Colorado as an example.
To read the complete report, click here.
