Banks Hold Ground Post-Trump Cannabis Rescheduling

Major U.S. banks continue refusing to serve cannabis businesses despite President Trump's rescheduling order rescheduling marijuana, highlighting that policy changes alone won't solve the industry's banking crisis.

The ongoing reluctance from financial institutions has reportedly frustrated Trump administration officials who expected the rescheduling order to unlock banking access for the $32 billion legal cannabis industry.

"Banks are inherently risk-averse institutions," said John Fincher, a financial analyst specializing in cannabis markets. "Without concrete legal assurances, it's unlikely we'll see a change in their approach."

The Banking Problem Persists

Cannabis businesses have struggled to access banking services since state legalization began because marijuana remains federally illegal. Banks, which are federally regulated and insured, risk prosecution for money laundering if they serve cannabis companies.

The Trump administration's December 2023 executive order rescheduling marijuana from Schedule I to Schedule III was expected to ease these concerns. But banks are waiting for congressional legislation that explicitly protects them from federal prosecution—not just executive action that could be reversed.

"We hoped this would open more doors, but clearly, more work needs to be done," said a cannabis policy expert.

What Banks Want

Financial institutions are seeking passage of the SAFE Banking Act, which has passed the House multiple times with bipartisan support but stalled in the Senate.

The legislation would prohibit federal banking restrictions regulators from penalizing banks solely because they serve state-legal cannabis businesses. It would also protect banks from federal asset forfeiture and criminal prosecution for providing services to licensed cannabis operators.

Until such legislation passes, most banks view cannabis banking as too risky regardless of Schedule I11 status.

Current Alternatives

Some smaller banks and credit unions do serve cannabis clients, accepting the legal risk. But their capacity is limited, they charge premium fees, and many won't touch THC-related businesses—focusing instead on CBD companies with lower federal risk.

Cannabis businesses rely heavily on cash, which creates security risks, tax payment complications, and difficulty tracking finances properly. Some use cashless ATM systems or other workarounds, but these add costs and complexity.

Path Forward

Industry advocates are pushing Congress to take up the SAFE Banking Act again, arguing that the Trump administration's willingness to reschedule marijuana signals broader federal acceptance that should extend to banking protections.

Whether the current Congress acts on cannabis banking remains uncertain, leaving the industry in limbo despite the rescheduling progress.

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This article is based on original reporting by MJBizDaily.