Banks Remain Cautious About Cannabis Banking Due to Regulatory Uncertainty
A Government Accountability Office (GAO) report reveals that banks and credit unions remain hesitant to serve cannabis-related businesses due to perceived regulatory risks, despite no financial institution being penalized for doing so. The GAO interviewed over 100 institutions and found uncertainty around the evolving legal landscape of cannabis at both state and federal levels as a key deterrent. Cannabis is now legal in 41 states for medical use and 24 for recreational purposes, yet banks continue to avoid these businesses due to operational costs and compliance burdens. Some financial institutions charge high fees—upward of $100,000 annually—to cannabis-related clients, citing the need for additional due diligence. The report was requested by several Democratic senators seeking clarity on why access to banking services remains difficult for legal cannabis operators. While some banks serve these businesses out of community interest or public safety concerns, many are waiting for clearer regulatory guidance before committing.