Why some weed businesses don’t want federal legalization

“It’s going to open up a tidal wave of large operators … sucking up all the capital in the capital markets and essentially rendering social equity participants unable to even get funded,” said Aaron Goines, co-owner of Emerald Turtle, a social equity-owned cannabis delivery company in Massachusetts. “In general for social equity, I think it would be a disaster at this point for federal legalization to occur.”

Senate Majority Leader Chuck Schumer has thrown his weight behind cannabis decriminalization, producing a draft bill this summer that would regulate a nationwide industry and force siloed state markets to interact with each other. Tearing down those walls would open up new business opportunities and unlock more traditional banking tools for an industry that has long been forced to primarily use cash. However, it could immediately expose every existing state market to a frenzy of national competitors and disrupt hard-fought local…

Read more…