FILE - A marijuana plant is visible at a medical marijuana dispensary in Egg Harbor Township, N.J., March 22, 2019 The Biden administration’s move to reclassify marijuana as a less dangerous but still illegal drug was hailed as a monumental step in reshaping national policy. But it appears it would do little to ease a longstanding problem in the industry, a lack of loans and banking services other businesses take for granted.
The U.S. Drug Enforcement Administration’s plan would move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD, to a Schedule III drug, alongside ketamine and some anabolic steroids.
“Cannabis is still an emerging market with a lot of credit risk,” Hill added. Even with rescheduling “cannabis companies should expect that banking services will still be expensive.”