2.25.25 - The State of Cannabis Banking: Q1 2025 Update
02.25.2025
The cannabis industry continues to evolve, and with it, the financial landscape supporting cannabis businesses is shifting. Over the past three months, we’ve seen key developments in cannabis banking, legislative efforts, and overall market trends. Here’s what you need to know:
More Banks Are Working with Cannabis Businesses
According to recent data from the Financial Crimes Enforcement Network (FinCEN), a record number of banks—831 institutions—are now providing services to cannabis businesses. This marks a significant increase and signals a growing willingness among financial institutions to engage with the industry despite ongoing regulatory challenges.
SAFER Banking Act & Federal Policy Updates
One of the most anticipated legislative changes, the SAFER Banking Act, remains in limbo. If passed, this bill would offer explicit legal protections for banks serving cannabis businesses, reducing the risk of penalties and regulatory scrutiny. However, delays in Congress mean financial institutions are still operating under the same uncertain conditions as before. Meanwhile, the Biden administration’s efforts to reschedule cannabis from Schedule I to Schedule III could reduce some restrictions but won’t immediately resolve banking issues.
Challenges Remain Despite Growth
Despite the increase in banking participation, many institutions are still hesitant to work with cannabis businesses due to strict compliance requirements, including Suspicious Activity Reports (SARs). These reports track transactions related to cannabis businesses, which some banks see as an unnecessary risk. Additionally, until cannabis is fully descheduled or the SAFER Banking Act is enacted, many financial institutions will remain cautious.
The Political Landscape & What’s Next
The political climate continues to influence cannabis banking. Some lawmakers are pushing for broader federal legalization, while others remain opposed. The upcoming months will be critical, as a Senate vote on the SAFER Banking Act could determine the future of cannabis banking. Advocates argue that allowing full banking services would increase transparency, improve security, and legitimize a growing industry.
TASI Bank’s Perspective
As a leader in cannabis banking, TASI Bank remains committed to supporting the industry despite the regulatory complexities. We continue to monitor legislative updates and work closely with cannabis businesses to provide the financial services they need to grow and thrive.
Looking ahead, the cannabis industry is poised for continued expansion, but access to financial services remains a significant hurdle. With ongoing advocacy and legislative action, we hope to see meaningful progress in 2025.
Stay tuned for more updates. If you’re a cannabis business looking for banking solutions, reach out to TASI Bank—we’re here to help.
