--- title: "Colorado Pot Shops Work Through Financial Hiccups" id: "21127" type: "post" slug: "colorado-pot-shops-work-through-financial-hiccups" published_at: "2014-01-08T21:16:05+00:00" modified_at: "2026-03-16T03:28:04+00:00" url: "https://associationsnow.com/2014/01/08/colorado-pot-shops-work-through-financial-hiccups/" markdown_url: "https://associationsnow.com/2014/01/08/colorado-pot-shops-work-through-financial-hiccups.md" excerpt: "While the sale of recreational-use marijuana is now legal in Colorado, its status as illegal under U.S. law is leading to complications for vendors, who can't use the federal banking system to do business." taxonomy_category: - "Business Development" taxonomy_post_tag: - "AssociationsNow" - "banking" - "Business" - "marijuana" - "Regulations" taxonomy_content_format: - "Article" taxonomy_role: - "For-Profit CEO / President / Owner / Partner" taxonomy_persona: - "Industry Professionals" --- [Home](https://associationsnow.com/) » [Articles](https://associationsnow.com/format/article/) » Colorado Pot Shops Work Through Financial Hiccups When so-called “pot shops” opened up legally in Colorado last week, one thing they couldn’t offer shoppers was the ability to pay via credit card. Due to differences in state and federal law regarding marijuana’s legality as well as legal concerns of the banking industry, these groundbreaking businesses, which drew national attention [and more than $5 million in sales (opens in a new tab)](http://www.huffingtonpost.com/2014/01/08/marijuana-sales-colorado_n_4552371.html) in the past week, can’t use the federal banking system. Which means that they’re stuck doing business—everything from taking customer payments to paying employees—in cold, hard cash. “There is absolutely no justifiable reason to allow this threat to public safety to continue in those states where the regulated sale of marijuana has been made legal,” Betty Aldworth, deputy director of the National Cannabis Industry Association (NCIA), [said in a statement (opens in a new tab)](http://www.globenewswire.com/news-release/2013/12/31/599757/10062688/en/New-Year-But-Still-No-Banking-Marijuana-Industry-Expected-to-Generate-2-34-Billion-in-Revenues-Without-Access-to-Banking-Services.html) ahead of the launch of Colorado’s legal dispensaries. More details: **The problem at retail:** For many of these businesses, the forced reliance on cash and storage of funds creates security concerns—partly because it drives a perception that the businesses have a significant amount of cash on hand at all times. “If we could remove the thought that we have a lot of cash on hand, perhaps it would re-instill some feeling of safety or security,” Toni Fox, the owner of Denver’s 3-D Cannabis Center, [told TV station KWGN (opens in a new tab)](http://kwgn.com/2014/01/02/most-pot-shops-are-cash-only-operations-that-face-big-security-challenges/) . **Different treatment?** Cannabis industry groups note that the state of Colorado itself has access to the banking system, having deposited $9 million in medical marijuana sales tax funds in state-held bank accounts in the 2012-2013 fiscal year. That technically might be illegal under federal law. “Bankers holding accounts for a state with legal marijuana businesses but closing the accounts of those legal, regulated businesses are kidding themselves if they think they aren’t handling marijuana-related money,” the NCIA’s Aldworth [told The Denver Post (opens in a new tab)](http://www.denverpost.com/marijuana/ci_24843283/state-banks-pot-money-that-industry-is-unable) . State officials contend that even if the source of the money is considered illegal under federal law, the taxes collected are not. **All isn’t lost:** In Washington, federal regulators and legislators are working on addressing the gaps between state and federal law. Rep. Ed Perlmutter (D-CO) [has introduced a bill (opens in a new tab)](https://www.govtrack.us/congress/bills/113/hr2652) that would allow legal marijuana businesses access to banking. Meanwhile, the U.S. Justice Department is expected to clarify the legal issues involving federal banking, something the American Bankers Association welcomes. “There’s a great deal of guidance that banks would want to hear about in terms of banking with these types of businesses,” ABA Vice President of Compliance Richard Riese [told the Wall Street Journal (opens in a new tab)](http://online.wsj.com/news/articles/SB10001424052702303933104579304971072995180) . **Denver’s show of support:** Meanwhile, the Denver City Council passed a resolution Monday asking the federal government to give pot shops access to the federal banking system. “If it’s here, its regulation should be safe, responsible, and effective,” Councilman Chris Nevitt said of legalized marijuana sales, [according to The Denver Post (opens in a new tab)](http://www.denverpost.com/news/ci_24857526/denver-asks-that-pot-businesses-have-access-federal) . “The piece that’s missing is banking.” (iStock/Thinkstock) [Ernie Smith](https://associationsnow.com/author/ernie-smith/) Ernie Smith is a former senior editor for Associations Now. [More articles by this author](https://associationsnow.com/author/ernie-smith/) Tags: [#banking](https://associationsnow.com/tag/banking/) [#Business](https://associationsnow.com/tag/business/) [#marijuana](https://associationsnow.com/tag/marijuana/) [#Regulations](https://associationsnow.com/tag/regulations/) **Stay Informed** [Subscribe to our free newsletter](https://associationsnow.com/newsletter/) , *Associations Now Daily News*, to find out what’s happening in the association world every business day. ## You Might Like - [VideoPartnerships that Drive Success: ASAE Strategic Partnership AllianceAugust 26, 2025](https://associationsnow.com/2025/08/26/partnerships-that-drive-success-asae-strategic-partnership-alliance/) - [VideoGenerate Leads and Brand Awareness: Master the ASAE MarketplaceJune 18, 2025](https://associationsnow.com/2025/06/18/generate-leads-and-brand-awareness-master-the-asae-marketplace/) - [VideoUrban Land Institute- Project Recovery: Rebuilding Los Angeles After the January 2025 WildfiresSeptember 24, 2026](https://associationsnow.com/2026/09/24/urban-land-institute-project-recovery-rebuilding-los-angeles-after-the-january-2025-wildfires/) - [PodcastAssociations NOW Presents: All for the Love of Chicago: Rethinking the Destination ExperienceSeptember 10, 2026](https://associationsnow.com/2026/09/10/associations-now-presents-all-for-the-love-of-chicago-rethinking-the-destination-experience/) ## Comments **Comments are for ASAE members.** [Learn more about comments on this site.](https://associationsnow.com/comments/) [Log in](https://associationsnow.com/login?redirect_to=https%3A%2F%2Fassociationsnow.com%2F2014%2F01%2F08%2Fcolorado-pot-shops-work-through-financial-hiccups%2F%23comments) to your member account or [join ASAE](https://my.asaecenter.org/select-a-membership-type/) !