Speaking in front of the US Congress today, US Federal Reserve Chair Jerome Powell said clarity is needed for US banks dealing with cannabis companies.
Marijuana is illegal under Federal law but legal now in 10 US states creating conflict for financial institutions. A number of pot stocks are pushing higher today on this and other news.
A Difficult Place for Financial Institutions
Powell was asked by Democratic Senator Bob Menendez if banks needed clarity in order to assess how to deal with cannabis businesses in US states where the substance is now legal. Powell said that clarity would be “great” adding:
Financial institutions and their regulators and supervisors are in a very difficult position here with marijuana being illegal under federal law and legal under a growing number of state laws.
Read the full story on CCN.com.