In the 2018 midterm elections last November, Michigan voters approved a measure to legalize a retail adult-use cannabis industry. As that industry begins to gain its footing, cannabis companies are looking ahead to the banking issues they’re soon to face. Fortunately for them, legal marijuana industries in other states have already shown that there are a number of ways around cannabis’ well-known cash crisis. And Michigan’s cannabis companies are availing themselves of many of those tricks. For now, however, the banks housing the industry’s cash are trying to be low key about it. But it looks like the secret is out.
Michigan’s New Legal Industry Faces the Old Cash Question
The perennial cash question that’s long plagued the legal cannabis industry is on the table again in Michigan. And companies know that it’s an urgent question, thanks to a few highly publicized provisioning center (read: dispensary) robberies. To put it simply, federal prohibition has made much of the U.S. industry “cash only.” Due to regulations against banking the proceeds of an illegal operation, major U.S. banks have refused to work with the cannabis industry. Without the financial services all other legal businesses can rely on, marijuana companies face some major challenges.