Treasury Report: Over 800 Banks Partnered With Cannabis Companies In 2023 Despite Federal Hurdles
The U.S. Treasury Department has released its quarterly report, revealing that last year, over 830 financial institutions nationwide have officially acknowledged relationships with state-licensed cannabis businesses. According to a report from the National Organization for the Reform of Marijuana Laws (NORML), this number reflects a modest increase from the previous year and represents nearly double the number of banks and credit unions engaged with the cannabis sector in 2018.
However, despite this growth, fewer than 10% of all financial institutions in the U.S. currently provide services to the cannabis industry. The ongoing hesitation among banks stems from federal law, which classifies marijuana as a Schedule I controlled substance. This classification poses significant legal risks for banks, even when working with businesses fully compliant with state cannabis regulations.
Legislative Stalemate Continues To Hinder Progress
Efforts to resolve the banking issue have repeatedly stalled in Congress. The U.S. House of Representatives has passed legislation seven times to protect financial institutions that …