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Home 🌿 Marijuana Politics 🌿 Federal Reserve says chartering pot credit union is illegal, refuses to do so 🌿Federal Reserve says chartering pot credit union is illegal, refuses to do so
The U.S. Federal Reserve has asked a federal judge in Denver to dismiss a lawsuit by a credit union asking a judge to force its hand and charter a bank for marijuana businesses, saying that would be "criminal."
"Even transporting or transmitting funds known to have been derived from the distribution of marijuana is illegal," said a motion filed Wednesday by the Federal Reserve in U.S. District Court in Denver.
The motion came in a lawsuit filed by Fourth Corner Credit Union, which was set up last year to serve Colorado's $700-million-a-year marijuana industry. It can't open without clearance from the Federal Reserve.
The government's motion says it does not intend to accept a penny connected to the sale of pot because the drug remains illegal under federal law.
Federal law may even preempt state laws when they conflict or obstruct federal law, the motion says.
Condoning Colorado's illegal marijuana...
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