Why it matters: The article highlights the increasing number of banking institutions that are filing to work with cannabis businesses. This comes ahead of potential changes in the way cannabis is classified at the federal level, specifically the U.S. Health & Human Services Department’s recommendation to reclassify cannabis from Schedule I to Schedule III.
What they are saying: The report from The Financial Crimes Enforcement Network (FinCEN) states that 812 banks and credit unions reported actively working with cannabis companies during the second quarter of FY2023, marking a significant increase from last year’s numbers. NORML Deputy Director Paul Armentano emphasizes the need for better access to banks and financial institutions for the cannabis industry, as lack of access to banking or investment capital is a top challenge for many businesses.
The big picture: The increase in banking institutions filing to work with cannabis businesses reflects a growing acceptance and willingness to operate in the cannabis industry. The potential reclassification of cannabis at the federal level could further transform the industry and create new opportunities, such as allowing dispensaries to accept credit card payments instead of relying on cash-only transactions.
What to watch: It will be important to monitor any developments regarding the potential reclassification of cannabis from Schedule I to Schedule III. This could have significant implications for the cannabis industry, particularly in terms of access to banking services and financial opportunities. Additionally, observing how this increased acceptance and engagement from banking institutions affects the overall growth and development of the cannabis market will be crucial.
My take: The increasing number of banking institutions willing to work with cannabis businesses is a positive development for the industry. Improved access to banking services can provide stability, transparency, and financial opportunities for cannabis businesses. The potential reclassification of cannabis at the federal level could further enhance the legitimacy and growth potential of the industry. However, it will be important for financial institutions and cannabis businesses to navigate regulatory requirements and ensure compliance with laws and obligations.
