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.
“Any potential decision from the administration to reclassify cannabis has no bearing on the legal issues around banking cannabis," said Blair Bernstein, a spokesperson for the American Bankers Association. “Cannabis would still be illegal under federal law, and that is a line many banks in this country will not cross.”continuing problem
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.
Rescheduling might make some banks more willing to consider doing business with cannabis firms, said Julie A. Hill, a professor at the University of Alabama School of Law. But even then, they would face costly regulatory requirements to vet funds coming from the industry — because the federal government lists cannabis as illegal, every marijuana-related transaction is considered suspicious, Hill said in an email.
A Congressional Research Service report last year said about 675 financial institutions — a fraction of the banking industry — are doing business with cannabis companies. The nonpartisan agency also noted that “the depth and breadth of financial services that depository institutions are providing to marijuana businesses is unclear.”