cannabis banking

Cannabis banking refers to the financial services available to businesses involved in the legal cannabis industry. Despite cannabis being legal in many states, it remains illegal federally in the U.S., complicating banking options. Many banks avoid working with these businesses due to potential legal risks, leading to challenges in managing cash, obtaining loans, and handling transactions. As a result, cannabis businesses often operate primarily in cash, which raises security and compliance concerns. Efforts are being made to create legal frameworks that allow banks to serve these businesses without fear of federal repercussions.