Medical marijuana firms face cash economy as banks steer clear | Boston Globe

The conflict between federal and state marijuana laws has become a bigger issue as more states legalize the drug for medical and, more recently, recreational, uses. Dispensaries in the other 19 states that have legalized medicinal cannabis have run into similar banking problems, requiring entrepreneurs to hide the nature of their business, establish separate holding companies, or just haul around bags of cash.

Last week, Attorney General Eric H. Holder Jr. said that legal marijuana businesses should have access to the banking system and that the Obama administration would provide rules aimed at easing banks’ concerns, mainly by making these activities low priorities for federal prosecutors.

Bank officials in Massachusetts, however, are far from assured, worried what might happen under different administrations. Their preferred solution: changing federal law.

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