TRANSCRIBED FROM: https://adamtracy.io/video/cryptocurrency-in-the-cannabis-industry/
Crypto Cannabis attorney Adam S. Tracy explains the current legal landscape regarding the cannabis industry and the uses and applications of cryptocurrency within the cannabis industry.
So the cannabis industry’s been great because it was really the first industry that cryptocurrency was really widely accepted and used, and that stems from the rather tenuous legal position of the cannabis industry on a whole. So, of course, you’ve got states such as California, Colorado, Illinois, Michigan, that have allowed medical usage of cannabis and sanctioned the growing, distribution and ultimate consumption of it. And then you’ve recently got the Colorado’s and California’s that have legalized recreational marijuana. And then across states in general, you’ve seen a toning down of marijuana and cannabis related enforcement to include ticketing as opposed to arresting and things of that nature for cannabis related crime. So there’s been a general softening, but the reality is, at the federal level, cannabis still remains illegal.
And, as a result, this has had an implication on banking, because banks are hesitant if not outright unwilling to deal with cannabis related ventures, even if they are licensed in the state that they’re licensed in. Because there’s implication for that, and inadvertently, for instance, a dispensary that is banking through a national bank such as a Bank of America, could, whether they’re intending to or not, commit wire fraud or even money laundering because the source of those funds, the sale of cannabis, is still illegal. So, when you look at it, cryptocurrency was a natural fit because things like Bitcoin, Doshcoin, provided a necessary economy that these coins continue to thrive in to this day.
And under the Obama Administration, you had something called the Cole Memorandum, which basically said that federal enforcement wouldn’t occur against the individuals involved in licensed and sanctioned activities within any given state. So basically it said if you were sanctioned, licensed under a state, and doing one of the functions, growing, selling, or you were using, that the federal government would not pursue prosection. Now, that has since changed where the Trump Administration and Attorney General Sessions has parsed pieces of that Cole Memorandum to broadly expand the reach of federal inquiry what would otherwise be state level legalized cannabis operations. So that’s had a chilling effect on banking and, as a result, you’ve see things like not only Bitcoin but obviously Doshcoin go much higher because now the need to rely again on cryptocurrency has increased and it’s signaled that at least for the remainder of this administration that you’re going to see probably a tightening of banking regulations as it relates to traditional banking for cannabis related ventures, and thus the need to use cryptocurrencies such as Bitcoin and Doshcoin.
So it’s an interesting play out how that’s going to actually happen with the tightening of the regulation and what effect that will have on state level licensed cannabis operations. But I tend to think, and I would advise and do advise many of my clients who are in the cannabis space, to rely on cryptocurrency, especially Bitcoin, something that’s a little more liquid, a little more stable, in the near term, as opposed to banking or unwittingly banking and you’re banking under the pretense that you’re not doing cannabis related activity because, whether you are in fact committing a crime, committing a felony, through the use of the wires of the United States, which is wire fraud, or money laundering, which effectively can be depositing money in bank accounts saying it’s something else, it’s really just not worth the risk to the extent you could find a bank to take your business to begin with.
So, to the many that reach out, feel free to call me in confidence. Visit my website, tracyfirm.com. I’m happy to answer any questions you have on this very topical subject. So I’m Adam Tracy. Talk to you later.
A former professional rugby player, Adam S. Tracy brings over twenty years’ experience as an attorney, consultant and dealmaker with a particular focus on cryptocurrency, digital products, payments and immersive corporate structures. As an accomplished executive and advisor to high risk merchants and stakeholders, Adam has proven himself as a results oriented, decisive leader with proven success advising early market entrants, technology adapters, as well as established participants across a wide range of verticals. Adam Tracy’s attack-first personality allows him to excel in dynamic, demanding environments including complex corporate negotiations, distressed environments and regulatory investigations.
In addition, Adam S. Tracy also has a successful track record co-founding high risk industry ventures, building & leading cross-functional teams, and spearheading diverse corporate transactions. A serial entrepreneur, Adam has successfully started and created exits across a wide swath of markets, including various mobile SaaS ventures, nutraceuticals, peer-to-peer payment systems, and several telemarketing-based ventures. Moreover, as a recognized expert in the payments field, Adam Tracy has been a blockchain and digital currency evangelist and influencer since the early days of Bitcoin.
Utilizing his proprietary “Pre-Event Driven™” strategy for decision making, Adam S. Tracy further leverages his over twenty years’ experience to create cost-effective, value-add solutions for each client. A data-driven acolyte, Adam continually refines his strategies based on field studies and data collection. Moreover, Adam Tracy further augments his range of solutions by actively networking with regulators, liquidity providers, legal and compliance experts, deal-flow brokers, investors and management of leading high risk industry ventures.
Adam S. Tracy earned his Bachelor of Science in Computer Applications and Bachelor of Science in Finance from the University of Notre Dame. He subsequently earned his Masters in Business Administration from the DePaul Kellstadt Graduate School of Business, while concurrently earning his Juris Doctorate from the DePaul College of Law. Adam lives outside Chicago with his with his wife, four dogs, and two cats.
On the Web: https://www.adamtracy.io
Email me: [email protected]