The Cannabis Prohibition Effect

By Alex Todd's

In California, Michigan, Arizona, and many other states cannabis cultivation, use, and distribution may be legal but there is still a major roadblock – federal prohibition. According to reports from the end of last year, 68% of Americans support cannabis legalization, but I still see us fighting the challenges of prohibition for at least a few more years due to all the politics behind it. 

In the news, we see a lot about the back-and-forth about what’s going on in the legislative side but there are small businesses, like mine, affected by these restrictions on a day-to-day basis. Small businesses are relying on cash and can’t use trusted financial institutions to safely conduct business. Not every legalized state allows entrepreneurs with cannabis-related convictions to start a cannabis business or work in one. All these factors amount to major halts in this country’s economic growth.

Relying on Cash

owners face major dangers when relying on cash. Cannabis businesses that aren’t backed by millions of dollars from investors, have a higher risk of being robbed and losing everything by relying on a cash-only business model. Not only are businesses like ours more prone to robberies, but the federal authorities have seized money  in legal states and in some cases, with no evidence.  In congress, the SAFE Banking Act has …

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The Cannabis Prohibition Effect on Benzinga