NEW YORK (TheStreet) -- The banking industry has the all-clear to do business with marijuana companies thanks to the Treasury Department, said TheStreet's Debra Borchardt.

Aaron Houston, policy adviser for Ghost Group, called the new guidelines, issued last week, a "substantial step forward" because many small marijuana businesses are being pinched by high tax rates and difficult access to capital. Many financial institutions had avoided these companies because marijuana is not legal at the federal level. 

Houston said it's "hogwash" if the banks complain about an additional burden or risk for them. Reporting "suspicious" activity applies to dealings with all businesses, not just marijuana businesses, he said. Banks are required by law to know their customers. 

Houston said the legalization of marijuana on the federal level is rapidly approaching a tipping point, one that has come much faster than most had expected. 

President Obama could use his executive authority to put the focus on marijuana, which would solve a host of problems, Houston said. It would ease the concerns of financial institutions regarding anti-money laundering, as well as provide relief for small businesses from heavy tax burdens. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

More from Opinion

12 Stocks That Our Writers and Their Sources Recommend You Buy Here

12 Stocks That Our Writers and Their Sources Recommend You Buy Here

Musk Goes on Unoriginal Media Tirade

Musk Goes on Unoriginal Media Tirade

What's Happening in Video Games This Week: On the Road to E3

What's Happening in Video Games This Week: On the Road to E3

Wednesday Wrap-Up: Let's Talk About General Electric

Wednesday Wrap-Up: Let's Talk About General Electric

From Finance to Fast Food: Women are Dominating this Week

From Finance to Fast Food: Women are Dominating this Week