Colorado has legalized marijuana for medical and recreational
use. Kentucky has legalized the production of industrial
hemp. Both substances are derived from the same species,
cannabis sativa l., which Congress has declared unlawful
under the Controlled Substances Act (CSA).1 In
both these states, new businesses see lots of economic opportunity
and are rapidly organizing and expanding to take advantage.
Can banks assist in these new economic ventures? Can
Kentucky banks learn anything from recent litigation in
Colorado?
Although marijuana is still illegal under the CSA, more than 20
states have legalized marijuana for medical or recreational
purposes. Rather than strictly enforce the federal prohibition, the
Justice Department issued guidance to local U.S. attorneys as to
its "enforcement priorities": distribution to minors;
gang activity; export to states where marijuana is still illegal;
preventing violence; illegal use of firearms; and drugged
driving.2 Man
