Legislation To Set Up ‘Pot Banks’ Passes In Colorado

A new banking system to deal with profits related to recreational marijuana in Colorado has been approved. KAIT reports Gov. John Hickenlooper signed legislation to try and establish the banking system on Friday.

The goal of the law is to set up a system of uninsured cooperatives to provide basic banking services to establishments selling the weed.

Banks have been weary to take any money from recreational marijuana dispensaries out of fear of violating federal law, where marijuana is still listed as a Schedule I drug.

But the legislation will not move forward without the go-ahead from the U.S. Federal Reserve. Without the OK, the legislation may end up being only symbolic.