Frosh hopes to lift financial regulation on legal marijuana industry
Maryland is joining the fight with other states to help the legalized marijuana industry. Attorney General Brian Frosh announced that he and 17 other Attorneys General are urging congress to advance legislation.
The fight centers around the ability of legalized medical or recreational marijuana businesses to bring their commerce to banking institutions.
Banks and other institutions are currently hindered from providing business to marijuana businesses.
A letter sent to congress asks for a law to provide a safe harbor for depository institutions to do business with the legal marijuana industry.
One company close to home, Peninsula Alternative Health, says these regulations are one of the biggest hurdles for the industry.
"We have additional costs in our business because we don't have access to banks. But also, even things like being able to accept credit cards from our clients," says Anthony Darby, CEO of Peninsula Alternative Health. "Studies show that when patients are able to pay in plastic and other means besides just cash your buyers will spend more at your business and it will be more fruitful."
It is argued legislation would help protect public safety by bringing gray-market funds into the banking sector, and the new funds flowing in would result in billions of dollars infused into the banking industry.