Bank Regulatory Issues Impede Cannabis Industry Financing Opportunities

The Bond Buyer

The nation’s rapidly expanding legal cannabis industry, which operates in 24 states and the District of Columbia, faces a multibillion-dollar question: what to do with the millions of dollars in cash it collects each year?

To date, nearly all the nation’s banks have refused to open accounts for hundreds of state-legal state cannabis businesses, leaving these businesses to operate almost entirely in cash. Governments, in turn, have difficulty monitoring criminal activity and properly collecting tax revenues.