Cannabis Banking

Tailored Banking Services for the Cannabis Industry

Navigating the banking landscape for cannabis-related businesses (CRBs) can be daunting. That’s why having a dependable financial partner is essential. With customized products, services, and financial tools, we support the unique needs of your business, enabling you to thrive in this rapidly expanding industry.

Cannabis Banking in 2026: Federal Law, State Markets and What Banks Require

Cannabis banking is the set of deposit, payment and cash-management services a bank provides to state-licensed cannabis-related businesses (CRBs): dispensaries, cultivators, processors, manufacturers, testing labs, transporters and the ancillary companies that serve them. The legal market is larger in 2026 than ever before, yet federal law still treats most marijuana as a controlled substance. That is why cannabis banking remains a specialty, offered only by banks that build their compliance programs around it. Here is where the industry, and the rules that govern a cannabis business bank account, stand today.

The State-Legal Cannabis Market in 2026

According to Pew Research Center’s May 2026 summary of National Conference of State Legislatures data, 24 states and the District of Columbia allow both adult-use (recreational) and medical cannabis, 16 more states allow medical use only, and 8 others run CBD or low-THC programs. Only Idaho and Kansas have no legal program at all.

State-legal cannabis sales reached $29.1 billion in 2025, down slightly from $30.1 billion in 2024 as falling wholesale prices offset steady consumer demand, and the industry employs an estimated 412,500 full-time workers, according to the 2026 Vangst and Whitney Economics jobs report. California, Michigan and New York lead the country in cannabis jobs. Much of that revenue still moves as cash, and every deposit has to be documented, reconciled with state seed-to-sale records and reported correctly, which is the core of what a cannabis bank does.

Federal Marijuana Law: Partial Rescheduling, Not Legalization

Following a December 2025 executive order, the Justice Department and DEA moved FDA-approved marijuana products and marijuana subject to a qualifying state medical license from Schedule I to Schedule III of the Controlled Substances Act, effective April 28, 2026 (Federal Register). The order opens a DEA registration pathway for state medical licensees, and licensed medical operators are expected to move out from under Section 280E of the tax code going forward. Adult-use marijuana remains in Schedule I, and dual-license operators must keep medical and adult-use activity separate.

A broader DEA proceeding on moving all marijuana to Schedule III held hearings from June 29 to July 15, 2026. On September 29, 2026, the chief administrative law judge stayed that proceeding while the parties brief a new GAO report on drug-scheduling policy, so no final decision has been issued.

Cannabis Banking Rules: FinCEN Guidance and the SAFE Banking Act

Rescheduling did not create a banking safe harbor. Banks that serve marijuana-related businesses (MRBs) still follow FinCEN’s 2014 guidance (FIN-2014-G001) under the Bank Secrecy Act (BSA/AML). In practice that means:

• Enhanced due diligence at onboarding: verifying state licenses, ownership and the business model, and confirming the business does not implicate the federal enforcement priorities listed in the guidance, such as sales to minors or diversion to other states.
• Ongoing monitoring: comparing account activity with the license type, expected revenue and state records, and refreshing due diligence over time.
• Suspicious Activity Reports (SARs): “Marijuana Limited” SARs for businesses that appear compliant, “Marijuana Priority” SARs when red flags appear and “Marijuana Termination” SARs when a bank exits a relationship.
• Currency Transaction Reports (CTRs): filed for cash transactions over $10,000, as for any business.

Congress has not passed a statutory fix. The SAFE Banking Act of 2026 (S. 4942) and its House companion, H.R. 9471, were introduced in June 2026. They would bar federal regulators from penalizing banks for serving state-sanctioned cannabis and hemp businesses, protect those proceeds from money-laundering liability and require Treasury to update FinCEN’s guidance within 180 days. Both bills remain in committee. Our SAFE Banking Act guide breaks the bill down section by section.

Hemp and CBD Banking After the Federal Hemp Redefinition

Federal hemp rules are changing too. The November 2025 funding law (P.L. 119-37) redefines hemp using a total-THC test that counts THCA, excludes synthesized cannabinoids and limits finished hemp-derived cannabinoid products to 0.4 milligrams of total THC per container. A September 2026 law (P.L. 119-103) moved most of the change to December 11, 2026, while the exclusion of synthetic cannabinoids still begins November 12, 2026, Marijuana Moment reported. Many intoxicating hemp THC products sold today will fall outside the federal definition once the new rules apply, so banks are reviewing hemp and CBD customers’ product lines and certificates of analysis closely. Herring Bank offers dedicated hemp banking and CBD banking programs.

What Banks Look for in a Cannabis Business Bank Account Application

• Active state and local cannabis licenses for every location and license type
• Formation documents, ownership structure and beneficial-owner information
• Seed-to-sale tracking records (such as METRC or BioTrack) and point-of-sale reports
• Financial statements, tax filings and expected monthly cash and deposit volumes
• Security, cash-handling and internal compliance policies

Our step-by-step guide explains how to open a cannabis bank account.

What This Means for Banking a Cannabis Business in 2026

Partial rescheduling, a pending SAFE Banking Act and a tighter federal hemp definition all point the same way: cannabis businesses need a bank whose compliance team already works inside these rules. Herring Bank provides nationwide cannabis banking for dispensaries, cultivators, processors, hemp and CBD companies and ancillary businesses, including business checking and savings accounts, a dedicated cannabis compliance team, cash pickup and delivery through our preferred armored courier, smart safes with Daily Deposit Credit for qualifying customers, payroll, ACH, wires and electronic tax payments, and 24/7 online and mobile banking. Owners and employees can also explore our Cannabis Home Loans. Ready to talk about cannabis banking? Call 877-873-0079 or apply online.