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ABA: The American Bankers Association
Issue

Cannabis Banking

Bridging the Gap between State and Federal Law

ABA Position

Currently, forty-seven states have legalized some form of medical cannabis. Banks face challenges when offering banking services to state-authorized cannabis-related businesses. Although almost all states have now legalized medical cannabis in some form, it remains illegal under federal law to manufacture, distribute, or dispense cannabis. The federal government therefore still considers the proceeds of cannabis-related transactions to be generated by illegal activity. Banks must abide by both state and federal law. Therefore, offering banking services to state-authorized cannabis-related businesses in violation of federal law carries important risk to banks.

Banks are also required to file suspicious activity reports when providing financial services to a "marijuana-related business.” As a consequence, many state-licensed cannabis-related businesses transact in cash, outside the regulated financial system.

ABA believes the time has come for Congress and the regulatory agencies to provide greater legal clarity to banks operating in states where cannabis has been legalized for medical or adult use. 

There have been a number of bills introduced in Congress that would provide protection for banks offering services to cannabis-related businesses without altering any federal prohibitions placed on cannabis. However, no final legislation has been adopted. Given nearly all states have legalized cannabis in some form, we believe Congress should pass legislation that subjects the lawful proceeds of state-authorized transactions to the oversight of the regulated financial system, and achieves the legal certainty states, banks and businesses need.

A hearing on a proposal to reschedule cannabis from Schedule I to Schedule III originally scheduled for January 21, 2025 was cancelled, but new status reports are due every 90 days.
ORDER REGARDING VILLAGE FARMS INTERNATIONAL, HEMP FOR VICTORY, AND OCO, ET AL.’S MOTION TO RECONSIDER  

In November 2024, when he was a candidate, the President expressed support for SAFER banking, and supporting states rights to pass marijuana laws.
https://truthsocial.com/@realDonaldTrump/posts/113105431683796730

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