Minnesota Cannabis Banking

2025 Cannabis Banking in Minnesota: Updated Rules, Regulations & Industry Outlook

Minnesota’s cannabis industry is on the brink of a major transformation in 2025. While recreational cannabis use became legal on August 1, 2023, the state is now preparing for the launch of commercial cannabis sales, expected later this year. Tribal nations have already moved ahead with early retail operations, but broader statewide licensing is set to begin as the Office of Cannabis Management (OCM) finalizes regulations and awards licenses across more than a dozen business categories.

Under the 2023 legislation (House File 100), adults 21 and older may legally possess:

• Up to 2 lbs. of cannabis flower at home (2 ounces in public)

• 8 grams of concentrate

• 800 mg of THC-infused edibles
  Home cultivation of up to 8 plants (4 flowering) is allowed for personal use, and gifting cannabis within legal possession limits remains permitted.

This landmark law reflects decades of evolving cannabis policy in Minnesota—beginning with decriminalization in 1976 and medical marijuana legalization in 2014. Governor Tim Walz, a strong proponent of legalization, helped push HF100 through in 2023 with a focus on public safety, economic opportunity, and criminal justice reform. Expungement of nonviolent cannabis offenses and equity-focused licensing programs are core components of the state’s rollout.

Minnesota also added a 10% cannabis sales tax, which supplements existing state and local taxes. Proceeds will fund public health, enforcement, and social equity initiatives. In a forward-thinking move, the University of Minnesota launched a Cannabis Research Center in late 2023 to guide policy, education, and science-based cultivation and health practices.

Minnesota Cannabis Banking Solutions: Herring Bank’s Commitment

At Herring Bank, we understand the complexity of launching and operating a cannabis-related business (CRB) in a newly regulated market like Minnesota. With commercial licenses rolling out in 2025, access to compliant and transparent financial services is more important than ever.

Our cannabis banking solutions are designed specifically for Minnesota’s regulatory landscape. From seed-to-sale account management and cash handling to merchant solutions and financial guidance, Herring Bank offers a comprehensive suite of services tailored to the cannabis sector. Our team stays up to date on state and federal developments to help CRBs remain compliant and growth-focused.

As your dedicated financial partner, we’re here to help you navigate Minnesota’s evolving cannabis economy—empowering your business with the stability, transparency, and banking confidence it needs to thrive.

Frequently Asked Questions

Can dispensaries use banks?

Yes, dispensaries and other cannabis-related businesses (CRBs) in Minnesota, as well as in other states, have the opportunity to utilize banking services through institutions like Herring Bank. Despite the intricate regulatory environment and the continued federal prohibition of cannabis, a select group of banks and financial institutions have begun to provide banking services to the cannabis industry. This change is in response to the increasing demand for legitimate financial services in the sector, encompassing secure cash handling, business checking and savings accounts, and electronic payment processing.

What types of cannabis companies do you support?

Herring Bank offers its banking solutions to a wide variety of cannabis-related businesses, such as Dispensaries, Cultivation facilities, Manufacturing companies, and Armored Transport services, among others.

What is the banking Act for cannabis?

The banking act related to cannabis, known as the SAFE Banking Act (Secure and Fair Enforcement Banking Act), aims to provide “safe harbor” protections for financial institutions. This legislation seeks to enhance the marijuana industry’s access to banking, lending, and insurance services by protecting banks and other financial entities from federal prosecution or penalties for providing services to cannabis-related businesses operating legally under state laws.

What are the benefits of partnering with specialized financial institutions?

Partnering with specialized financial institutions offers cannabis businesses growth opportunities, enhanced banking efficiency, and strong compliance and regulatory support. This can help improve the overall financial management and stability of the business.

What Cities do you serve in Minnesota?

Herring Bank offers Cannabis Banking Services to the following Minnesota cities: Minneapolis, Saint Paul, Rochester, Bloomington, Duluth, Brooklyn Park, Plymouth, Maple Grove, Woodbury, St. Cloud, Eagan, Eden Prairie, Coon Rapids, Burnsville, Blaine, Lakeville, Minnetonka, Apple Valley, Edina, St. Louis Park.  The Bank has developed an extensive network of armored couriers to securely manage cash deposits for cannabis companies.