Over the past couple of years, the cannabis industry has seen exponential growth as the Obama administration left legalization in the hands of the states. States were given the rights to propose legislation and implement their programs without interference from the federal government.
So far in 2017, we have seen the tune change as it relates to the cannabis industry and have seen some signals as to a looming crackdown especially as it relates to the recreational market. There is no clear sign as to what the Trump Administration will do on October 1st when the fiscal budget resets and Jeff Sessions will be able to request appropriations to go after cannabis.
In June, we had two instances that placed high profile figures of the cannabis industry on the wrong side of a decision made by a major corporation. We can only speculate that these decisions are foreshadowing what might be in our near future but one thing is for certain, the industry is improving life for millions and making progress every day.
- Casinos are banning players because they are in marijuana industry
On June 12th, Leafly broke a story that Isaac Dietrich, CEO of MassRoots had been ejected and banned from gambling at Wynn Resorts.
Mr. Dietrich was kicked out of the Las Vegas casino after the hotel management had uncovered that the customer due diligence procedures required by the Wynn Las Vegas compliance program identified his business as a marijuana related entity that derives its income from marijuana businesses. Unfortunately, this puts his source of wealth in the marijuana field – as your business is being paid with proceeds from the sale of marijuana.
While we do not agree with the stance the Wynn is taking, they are clearly abiding by the laws set forth to strengthen their anti-money-laundering compliance.
You can find the original release from the American Gaming Association HERE.
- PNC Bank is stopping access for MPP after years
Last week, a story broke that PNC Bank was closing the bank account of the influential cannabis legalization group, the Marijuana Policy Project. PNC chose to act due to the fact, the MPP takes donations from businesses that operate within the cannabis industry. Banks were given guidelines in 2014 by the Financial Crime Enforcement Network, a law enforcement arm of the U.S. Treasury, on how financial institutions can stay within compliance when doing business with cannabis related businesses. PNC is electing to do this and could find a way to accommodate MPP if they chose.
MPP spokesman Mason Tvert was quoted, “We receive contributions from state regulated marijuana businesses … that are paying taxes,” he said. “Yet we don’t see anyone shutting down the federal government’s bank account or state or local governments’ bank accounts. We have moved so far toward legitimizing this industry yet we are still seeing these kinds of ridiculous situations that need to be addressed.”
The MPP is currently seeking a new financial institution to bank with.
Important Investor Disclosures
This report was authored by and is property of Technical420. All information and data relied upon in drafting this report is publicly available. The author believes and considers its sources to be reliable, but does not guarantee the accuracy or completeness of any information contained in this report. Any and all information, data, analyses and opinions are provided for informational purposes only and is not intended, in any manner, as investment advice. Any projections or other information generated by Technical420 regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. None of the material contained in this report is intended as a solution or offer to sell or purchase a specific stock or any other investment. This report is not directed to, or intended for distribution or use by, any person or entity that is a citizen, resident or located in any municipality, state, country or other jurisdiction where the distribution, publication, availability, or use of this report is contrary to any governing law or regulation. The securities discussed in this report may not be eligible for purchase and/or sale in certain jurisdictions or by particular individuals. It is important that you check any and all governing laws and/or regulations that may be applicable in your jurisdiction. Investing in securities of issuers organized outside of the United States, including ADRs, entail certain risks. The securities of non-United States issuers may not be registered with, nor be subject to the reporting requirements of the United States Securities and Exchange Commission. Please contact a Financial Advisor for professional advice regarding any and all securities investments. This report is intended for informational purposes only