The U.S. cannabis industry got a reminder last week that being legit can still be a drag, as Mastercard asked financial institutions to stop accepting transactions for the purchase of the drug using its debit cards.
Industry players say the Mastercard restrictions are another hurdle on the road to legitimacy that will hurt growth, already burdened by taxes, fees and regulatory restrictions at state, county and local levels, as well a political pushback in half the country. Maybe the argument for federal legalization will gain traction at some point, but until that happens, the industry should not expect state legalization to somehow supersede federal law. Again, any small business regardless of the industry would not presume to enjoy such an exception.
Another concern, voiced by the most ardent detractors of legalization, is that if indeed marijuana is a gateway drug to more powerful ones, wider and easier availability will exacerbate the growing problem of heroin, oxycodone and fentanyl, already at epidemic proportions among U.S. suburban youth.