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The Challenges of Banking in the Cannabis Industry ​

Why Banks Don’t Work with Cannabis Businesses ​

  • Cannabis is still illegal federally, making banks cautious.
  • Banks fear federal penalties for money laundering violations.
  • Cash-only operations increase robbery risks and financial mismanagement.

How Cannabis Businesses Manage Without Banks ​

  • State-chartered credit unions – Some offer limited banking services.
  • Cryptocurrency solutions – Some companies use blockchain payments.
  • Workarounds with third-party financial tech (FinTech) – Digital payment platforms help process transactions.

Proposed Solutions: The SAFE Banking Act ​

The SAFE Banking Act would:

  • Allow banks to legally work with cannabis companies.
  • Reduce cash dependency, improving security.
  • Provide access to loans and financial services.

Key Takeaways ​

  • Cannabis businesses face major financial hurdles due to banking restrictions.
  • Workarounds like credit unions and FinTech exist, but they’re not perfect.
  • Federal banking reform is needed for a sustainable industry.

Until cannabis is federally legal, banking will remain a huge challenge for the industry.