Banking Is Still a Headache — But Cracks Are Forming
If you thought 2025 was going to be the year cannabis businesses finally got treated like legit businesses by the banking system — think again.
Yes, there’s progress. Yes, some states have made workarounds. But the federal banking blockade is still very much alive, and until Congress pulls its head out of its ass, cannabis operators are stuck playing financial gymnastics just to keep the lights on.
The good news? Beard Bros has been in this game long enough to spot the cracks forming in the system, and we’re here to break down what’s changing, what’s not, and how you can prepare — no fluff, just real talk.
Why Most Banks Still Avoid Cannabis
Even with all the tax revenue cannabis generates, most banks still want nothing to do with us. Why?
🔴 Cannabis is still federally illegal.
🔴 Money from cannabis sales is technically “proceeds from illegal activity.”
🔴 Banks hate risk, and cannabis operators are walking compliance liabilities.
Even banks that want to work with cannabis are terrified of the feds slapping them with money laundering charges. Until federal law changes, the big banks will keep ghosting us.
Want to see how this plays out in real life? Check out Cannabis Business Audits: How to Prepare and What to Expect — because if your financials aren’t spotless, you’re handing auditors the perfect excuse to dig deeper.
State-Chartered Banks & Credit Unions — Better, But Not Perfect
So if Chase, Wells Fargo, and Bank of America won’t touch you, who will?
State-chartered banks and credit unions.
These smaller institutions aren’t tied directly to federal banking regulations the same way the big dogs are, so they have a little more flexibility. But make no mistake — cannabis accounts still come with high fees, invasive reporting requirements, and constant scrutiny.
The upside?
✅ You get access to basic banking services (payroll, bill pay, checking accounts).
✅ You might even get access to some lending programs, though the rates won’t be pretty.
The downside?
❌ No federal protection.
❌ No guarantee your account won’t get suddenly closed if compliance slips.
❌ Extremely limited loan options.
For operators in California and Massachusetts, the state-chartered route is often the only viable path — but expect to pay for it. Cannabis banking isn’t just banking — it’s high-risk financial babysitting.
How SAFE Banking (If Passed) Could Change the Game
Ah, SAFE Banking — the bill that’s been teased more times than a Snoop Dogg retirement.
If Congress actually passes it (and that’s still a big if), here’s what it would do:
✅ Let banks work with state-legal cannabis businesses without fear of federal prosecution.
✅ Open the door for larger banks to enter the space (finally).
✅ Create access to more affordable business loans.
✅ Allow cannabis operators to move away from cash-heavy operations (less risk, more transparency).
Would SAFE Banking solve everything? Hell no.
280E could still haunt your tax returns even if federal descheduling happens — and that’s a much bigger fight (which we broke down in our Deschedule Not Reschedule piece). But SAFE Banking would at least end the financial limbo cannabis operators have been stuck in for years.
Best Practices for Securing (and Keeping) a Bank Account
Until the laws change, securing — and keeping — a cannabis-friendly bank account is a skill every operator needs to master. Here’s how:
✅ Be 100% Transparent
- Hide nothing. If your bank doesn’t know you’re a cannabis company, they will find out — and when they do, your account gets closed (and flagged).
✅ Have Immaculate Books
- No commingling, no sloppy transactions, and every dollar tied to a legitimate sale.
- Need help building that system? Start with solid SOPs — we covered how to build them right in Standard Operating Procedures for Cannabis Businesses: Best Practices in 2025.
✅ Partner with Financial Experts Who Understand Cannabis
- Not your cousin’s CPA who “does taxes sometimes.”
- You need cannabis-specialized financial pros — like the crew from Verdant Strategies.
✅ Stay Current on Compliance
- Banking compliance = KYC (Know Your Customer) on steroids.
- Expect ongoing audits, requests for updated licenses, and constant explanations of your revenue spikes and dips.
Conclusion: Banking = Survival Tool
At the end of the day, a reliable bank account is a survival tool for cannabis operators. Without it, you’re stuck running a cash business in 2025 — which means:
🚨 Higher risk of theft
🚨 More compliance headaches
🚨 Limited access to growth capital
Whether SAFE Banking passes or not, your job is to make your business look as boring and low-risk as possible to the financial world — that’s how you secure banking, keep it, and actually build something sustainable.
👉 Contact us today to learn about how we can help you grow.
👉 And for weekly updates on banking, compliance, and survival tactics, subscribe to the Friday Sesh — your free backstage pass to cannabis industry real talk.
