Major U.S. Banks Maintain Cannabis Ban Despite Trump’s Marijuana Rescheduling Order
Major U.S. banks continue to deny services to the cannabis industry despite President Trump’s marijuana rescheduling order, citing regulatory uncertainty and incomplete legislative protections
Key Points
- 1U.S. banks remain unwilling to serve the cannabis industry despite a federal rescheduling order
- 2Formal reclassification of marijuana as a Schedule 3 drug is still pending
- 3Banks cite uncertainty over adult-use cannabis and lack of clear protections
- 4Industry leaders and President Trump have expressed frustration with the banking stalemate
- 5Comprehensive legislative action remains necessary for widespread cannabis banking reform
Despite President Donald Trump's December 18 executive order to reclassify marijuana, leading U.S. banks remain unwilling to provide services to the legal cannabis industry. The $32 billion sector continues to face barriers to traditional financial services, a situation that has reportedly frustrated President Trump himself. As reported by MJBizDaily, the lack of immediate regulatory clarity means that institutions such as JP Morgan Chase & Co. are hesitant to alter their longstanding policies regarding cannabis clients
A memo from a JP Morgan executive cited by The New York Post clarified the bank’s position: without formal reclassification of marijuana as a Schedule 3 drug, they will not consider changing their approach. “It’s still too early to reconsider our position, and we will not change our stance,” the executive stated, underscoring the cautious stance of major financial institutions. The formal downgrade to Schedule 3, which would alleviate certain tax burdens for cannabis businesses, remains pending as the Attorney General finalizes the process
Bankers also point out that Trump’s rescheduling order appears to primarily address medical marijuana, leaving uncertainty about its application to adult-use cannabis. This ambiguity has further contributed to the reluctance of banks to engage with the industry. According to The Post, this distinction is a significant factor in their continued refusal, despite the growing legal acceptance of cannabis at the state level
Industry voices have expressed frustration with the ongoing impasse. Marc Cohodes, a former hedge fund manager, told The Post, “The industry is going to be banked whether they want to or not because Trump wants it to be banked.” He added, “Trump hates the fact that U.S. pot companies employing U.S. workers, paying U.S. taxes can’t get listed on any exchange but Canadian companies can.” The lack of access to banking services leaves many U.S. cannabis operators at a disadvantage compared to their international counterparts
Legislative action remains the most likely avenue for widespread banking reform. Despite repeated attempts, measures like the SAFER Banking Act have failed to advance in the Senate, particularly since Republicans took control of Congress. No bank or credit union has yet faced federal penalties for serving cannabis businesses, but the threat of money-laundering enforcement continues to deter most institutions from entering the market
From the OG Lab newsroom perspective, the ongoing reluctance of major banks to embrace the cannabis sector highlights the limits of executive action without legislative backing. Until Congress enacts comprehensive protections for financial institutions, the industry will likely remain cash-reliant and underbanked. This standoff underscores the need for clear, industry-wide guidance and signals that real change may hinge on future political and regulatory developments
