A Colorado bank has sued the Federal Reserve for not giving it permission to provide financial services to marijuana businesses.
Fourth Corner Credit Union of Denver filed suit Thursday against the Kansas City branch of the Federal Reserve, which supervises banks in Colorado.
The Fed denied Fourth Corner’s request to allow it to operate within the banking system.
Medical marijuana is legal in about 23 states and recreational marijuana is legal in Colorado, Washington, Oregon, Alaska and Washington, DC. However, it is still illegal on the federal level. That means banks don’t want anything to do with marijuana businesses, who are forced forced to operate in cash only.