DENVER — Colorado's attempt to create a bank to service its marijuana industry has suffered another setback by the federal government and could be facing an impossible dilemma.
The Federal Reserve — the guardian of the U.S. banking system — said in a court filing Wednesday that it doesn't intend to accept a penny connected to the sale of pot because the drug remains illegal under federal law.
The stance appears to mark a shift in the position of the federal government. Last year, the U.S. Treasury Department issued rules for how banks can accept pot money.
"We're frustrated," said Andrew Freedman, director...