Despite increased legalization at the state level of medical and adult-use recreational marijuana, illegality of non-hemp, cannabis at the federal level as a Schedule 1 controlled substance under the Controlled Substances Act (CSA) is an impediment for businesses in the cannabis industry (MRBs) to get access to banking and financing. Federal agencies have provided guidance, but processes are complex and entail a great deal of risk for a financial institution.
Below are some of the key aspects of federal guidance and a look toward proposed legislation to alleviate the state and federal legal tensions.