( CNN ) -- Colorado lawmakers on Wednesday approved a bill that would create financial services cooperatives specifically for licensed marijuana businesses in the state . Colorado Gov . John Hickenlooper is expected to sign the bill , according to his office . The legislation comes three months after the Justice Department issued rules for the first time allowing banks to legally provide financial services to marijuana merchants . Because marijuana is illegal under federal law , banks have been `` reluctant '' to provide services to licensed pot sellers , according to the bill , HB 1398 . As a result , these businesses often operate on a cash-only basis , a practice that Hickenlooper calls `` an invitation to corruption and criminal activity . '' U.S. Attorney General Eric Holder said in January that forcing marijuana businesses to be cash businesses , because they ca n't access banks , is a public safety problem . `` Huge amounts of cash , substantial amounts of cash , just kind of lying around with no place for it to appropriately deposited is something that would worry me from just a law enforcement perspective , '' he said . Colorado became the first state in the nation to legalize the sale of recreational marijuana , allowing pot stores to open for business on January 1 . Under the bill , cannabis credit co-ops can not refer to themselves as credit unions or banks and do not need deposit insurance . The co-ops will be subject to taxation , according to the bill . Cannabis lovers take Denver 's 420 weekend to new highs . Banks cleared to accept marijuana business . CNN 's Carma Hassan and Evan Perez contributed to this report .
Rep . John Hickenlooper is expected to sign the bill , his office said . Police have been ` ` reluctant '' to do business with marijuana sellers due to federal law . Pot sellers are often forced to operate on a cash - only basis , which invites crime .