New era for pot regulation leaves old problem: Many cannabis companies can't find a bank
The Biden administration’s move to reclassify marijuana as a less dangerous but still controlled drug was hailed as a monumental step in reshaping national policy
LOS ANGELES (AP) — The Biden administration's move to reclassify marijuana as a less dangerous but still controlled drug was hailed as a monumental step in reshaping national policy. But it might do little to ease a longstanding problem in the cannabis industry — a lack of loans, checking accounts and banking services that other businesses take for granted.
“As far as financial institutions, I don’t necessarily think it’s going to have a demonstrable effect” on how they deal with cannabis operators, said Morgan Fox, political director for the National Organization for the Reform of Marijuana Laws, or NORML.
Similarly, a banking trade group expected no shift in the legal landscape with the proposed change.
“Any potential decision from the administration to reclassify cannabis has no bearing on the legal issues around banking cannabis," said Blair Bernstein, a spokesperson for the American Bankers Association. “Cannabis would still be illegal under federal law, and that is a line many banks in this country will not cross.”
