Marijuana Regulations Leave Companies With Difficulty Finding a Bank

(AmericanProsperity.com) – The Biden Administration is looking to reclassify Marijuana as a less harmful drug, which has opened the doors to state regulators allowing its sale and distribution. With this said, marijuana companies are still having a hard time when it comes to finding a bank for loans, checking accounts, and other banking services attached to their business.

Blair Bernstein, a spokesperson for the American Bankers Association said, “Any potential decision from the administration to reclassify cannabis has no bearing on the legal issues around banking cannabis. Cannabis would still be illegal under federal law, and that is a line many banks in this country will not cross.”

Many financial institutions are not interested in having anything to do with money from the cannabis industry. Most of them are worried that the association would get them into legal trouble with the federal government since it still lists marijuana as illegal.

This has left many sellers and distributors high and dry in states where marijuana is legal. It has also forced some businesses to operate with only cash payments, which can be large amounts of cash, making them more likely to be flagged for a crime. This also means that when these businesses go to do their taxes or other necessary business transactions, they will travel with large sums of money.

The U.S. Drug Enforcement Administration is planning to move marijuana from a Schedule I drug, which includes LSD and Heroin, to a Schedule III, which includes some antibiotics and Ketamine. This would then establish various rules for medical uses and would allow criminal prosecution of anyone who trafficked them without permission.

This change could take months to go through the chain of command. Biden has had a lot of success with young voters after announcing the administration’s changes to the legality of marijuana. Proposals that would protect banks working with marijuana funds have been stalled in Congress for years now.

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