Cannabis Banking
What’s the Issue?
The legal landscape regarding cannabis and hemp is rapidly changing. Almost all states have legalized marijuana in some form. In April, the Justice Department rescheduled state-licensed medical marijuana from a Schedule I to a Schedule III substance under the Controlled Substances Act and initiated a new process to consider rescheduling non-medical marijuana. As of November 2026, hemp-derived cannabidiol (CBD) and related products, which are widely available for purchase, will be reclassified as marijuana under federal law. Even banks that don’t directly serve cannabis businesses can still be affected through indirect connections to companies involved in the industry. These developments underscore the need for Congress to act.
Legal uncertainty has kept many of these proceeds out of the regulated banking system, and many state-licensed cannabis-related businesses transact in cash. Offering banking services to these businesses, as well as the businesses that serve them, carries important legal and regulatory risks to banks. Between cannabis and hemp-derived products, it will soon be almost impossible to avoid providing banking services to businesses that are directly or indirectly connected to state-licensed cannabis producers and providers.
How Does That Impact Me?
No matter where you stand on cannabis legalization, limited access to banking forces state-licensed businesses to operate outside the regulated financial system. They often rely on cash or other alternative payments, lack consistent monitoring for suspicious activity, and face an increased risk of violent crime. Banks help detect suspicious activity and identify financial crime risks. Our communities would be safer, and the cannabis industry would be better regulated, if cannabis businesses were able to access the banking system.
What Can Be Done?
This is a federal issue, and Congress has an opportunity to act.
Congress should allow state-licensed cannabis businesses to participate in the banking system and remove the risk that banks and other financial services providers will face legal liability, regulatory, civil, or even criminal penalties for providing services to state-licensed cannabis businesses and their service providers. Congress should support and pass the Secure and Fair Enforcement (SAFE) Banking Act (S. 4942/ H.R. 9471), which previously passed in the House and Senate Banking Committee with bipartisan support.
Learn more in-depth about cannabis banking here.
