US banks still refuse cannabis businesses despite eased federal rules

Major US banks remain cautious about working with the marijuana industry, despite eased federal guidelines. Wells Fargo has reaffirmed its refusal to bank cannabis-related businesses or finance properties linked to them. The decision highlights ongoing tensions between state-level legalisation and federal law.

The issue stems from conflicting regulations, leaving many marijuana businesses operating in cash only. This has raised concerns from officials about safety and financial transparency. In 2014, the Departments of Treasury and Justice issued guidance to reduce risks tied to cash-heavy marijuana businesses. The move aimed to improve safety by encouraging financial institutions to work with the industry under strict conditions. However, Attorney General Eric Holder had previously warned about the dangers of large cash transactions in the sector.

Wells Fargo's stance remains unchanged, citing federal law as the basis for its policy. The bank argues that processing money from marijuana sales could still be considered money laundering under US regulations. Other major banks share similar concerns, with most avoiding direct involvement due to legal uncertainties and the industry's early development stage.

Bank of America has taken a slightly different approach. While it refuses to bank marijuana businesses directly, it does handle tax revenues from states like Colorado and Washington, where cannabis sales are legal. Financial trade groups, however, have rejected recent proposals to expand banking services, pointing to marijuana's continued federal illegality.

The situation leaves many cannabis businesses in a difficult position. Without access to traditional banking, they must operate almost entirely in cash, creating logistical and security challenges. As of early 2026, over ten states have legalised marijuana for medical or recreational use, but details on tax collection and banking support remain limited. The marijuana industry's banking struggles persist, with most major institutions avoiding direct involvement. Federal law continues to clash with state-level legalisation, leaving businesses reliant on cash transactions. Until regulations align, financial risks and operational hurdles are likely to remain.