The cannabis industry has come a long way. Just a few decades ago, it was considered dangerous and guarded and often associated with criminal activity. People involved in growing or selling cannabis faced serious legal consequences, including imprisonment. Today, however, things are different. Legalization is spreading, and cannabis is becoming more of a regulated norm. But despite this progress, the industry still faces serious challenges, especially because of the outdated banking restrictions and the ongoing threats of crime. People have lost friends and family to violence or imprisonment related to cannabis, and even in the legal market, many companies struggle to survive.
However, the evolution of the cannabis industry is a testament to the resilience of its pioneers, who faced immense risks and hardships that paved the way for the cannabis industry we know today.
A Troubled Past
For much of the 20th century, cannabis was treated like a dangerous drug, classified together with substances like heroin and cocaine. In the 1970s, the United States led the War on Drugs campaign, which led to mass incarcerations for non-violent cannabis offenses. Growing or selling cannabis wasn’t just a business; it was an underground risk that could lead to decades behind bars. And, because the stigma surrounding cannabis was huge, it wasn’t just the growers and sellers who suffered — entire communities were impacted.
Prior to the legalization of cannabis, entrepreneurs were considered outlaws. Many believed in the benefits of the plant, whether medicinal or recreational, but were under the misconception of its dangers. Some faced federal raids, risking and losing everything in the process. Others were imprisoned, often for years and sometimes for decades, for actions that are now completely legal in many places. The danger wasn’t just from the law; because the industry was unprotected, it often involved violence and theft.
The Shift Toward Legalization
In 1996, California’s legalization of medical marijuana marked a pivotal turn. Since then, the U.S. and many other countries have taken steps toward decriminalizing and regulating cannabis. Today, cannabis is legal for medical use in 38 states, plus Washington, D.C., and for recreational use in 23 states, with more likely to follow suit. Canada fully legalized cannabis in 2018, setting an example for other countries around the world.
The once-black-market industry has become a regulated sector, with licensed dispensaries, product testing and legal oversight. Instead of dealing with dealers, consumers can now walk into a clean, well-lit shop, pick up a safe product and pay taxes on it just like any other purchase. Governments are benefiting from this tax revenue, while patients and recreational consumers alike are gaining access to safer, more consistent products. But this shift hasn’t come easily. While the industry is now legal in many places, those early pioneers who took the biggest risks to make this possible often remain in the shadows.
Current State of the Industry
One of the biggest hurdles facing the legal cannabis industry today is its inability to access traditional banking. Because cannabis is still illegal under U.S. federal law, many banks and credit unions won’t work with cannabis businesses. This forces dispensaries and other businesses in the industry to operate almost entirely in cash. Handling large amounts of cash presents a host of problems — security being the biggest one.
Without access to bank accounts, credit cards or loans, cannabis businesses are vulnerable to theft. Criminals know that dispensaries have large amounts of cash on site, making them prime targets for robberies. Some businesses hire private security or install high-tech surveillance, but that’s not always enough. When a dispensary gets robbed, it’s not just the loss of cash or products that hurts — it’s the potential loss of an entire business. Some owners can’t bounce back from a big hit like that, especially when they can’t access loans or insurance to cover their losses.
In addition to robberies, the cash-heavy nature of the business creates logistical nightmares. Owners must find creative ways to pay their bills, employees and taxes in cash — sometimes hand-delivering payments in suitcases full of cash to government offices. It’s not only inefficient but also dangerous.
Unfortunately, the crime surrounding the cannabis industry isn’t limited to robberies. The violence tied to the cannabis trade in its illegal days hasn’t entirely disappeared. Even with legalization, some businesses still face the threat of violence, either from criminals seeking to steal from them or from the lingering tensions of the old black market.
But the impact of violence and imprisonment isn’t just a business problem — it’s personal. People who grew up in communities targeted by the War on Drugs have lost friends and family members to the legal system. Some are still incarcerated for nonviolent cannabis-related offenses, even as people in other parts of the country are opening dispensaries and profiting from the plant that once destroyed their lives. For these individuals and families, the shift toward legalization is bittersweet.
The cannabis industry also deals with asset seizures and federal raids in some cases. Even in states where cannabis is legal, federal law still overweighs state law, meaning a legal dispensary could still be raided by federal authorities. When that happens, the business owner could lose everything—cash, products, and even the ability to operate. The uncertainty and risks can be overwhelming for some operators who have poured their life savings into the business.
Through it all, the pioneers of the cannabis industry deserve recognition. These are the growers, sellers and activists who fought for legalization long before it was popular or profitable. They risked arrest, asset forfeiture and personal ruin because they believed in the potential of cannabis. Some of these pioneers have transitioned into the legal market and are thriving today, while others continue to fight for the release of those still imprisoned for cannabis-related offenses.
These pioneers didn’t just fight for a legal market — they fought for a shift in public perception. They were the ones who educated the public about the medical benefits of cannabis, advocated for its responsible use and helped push for policy changes that have made today’s legal market possible.
Looking Ahead
The evolution of the cannabis industry is a story of resilience. From its roots in danger and criminality to its current status as a regulated, multibillion-dollar industry, the road has been anything but smooth. The challenges are still real. Cash-heavy operations make the industry a target for crime, and many of those who were punished under old drug laws are still behind bars or struggling to rebuild their lives.
Despite these challenges, the cannabis industry is stronger than ever, thanks in large part to the pioneers who fought for its survival and eventual legitimacy. As more regions move toward legalization and the industry continues to grow, it’s important to acknowledge the sacrifices made along the way and to ensure that the future of cannabis is safe and inclusive for everyone involved.
Derek Ross is the CEO and founder of Nova Farms, the largest privately owned, vertically integrated cannabis operator in the Northeast. He is also the founder of the Aged-Out Foundation, a nonprofit organization dedicated to empowering young adults who have aged out of the foster and group home care systems to build promising futures and pathways to success.