The Fourth Corner Credit Union, located in Denver, was created specifically to serve the legal cannabis industry. It got state approval back in November, but has been denied a “master account” by the Federal Reserve, which is required for them to begin legal operations. They have also been denied federal insurance from the National Credit Union Administration. In response, the credit union has filed separate lawsuits against both entities.
The lawsuit against the Federal Reserve calls their denial “anti-competitive”, saying that it’s “detrimental to public safety”, and pointing out that businesses that are forced to deal in cash-only have “significant public safety concerns.”
Last week the United States Senate Appropriations Committee approved a measure that would prohibit the government from using federal funds to punish banks that provide financial services to cannabis businesses that are operating legally under state laws.