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  Cannabis  U.S. Cannabis Industry Still Facing Banking Hurdles Despite Support From Unlikely Allies
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U.S. Cannabis Industry Still Facing Banking Hurdles Despite Support From Unlikely Allies

Lars BeckersLars Beckers—February 19, 20250
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The cannabis industry in the U.S. has long struggled with financial discrimination, with businesses and individuals facing account closures, loan denials, and even asset seizures. Now, a growing coalition—including conservatives and industry leaders—is bringing the issue into the national spotlight. But despite the newfound attention, real solutions remain elusive.

Washington Finally Takes Notice

For years, cannabis businesses have been shut out of traditional banking services, forcing them to operate in risky cash-based environments. The issue made headlines again in December after venture capitalist Marc Andreessen and podcaster Joe Rogan suggested that financial institutions were targeting conservatives.

Donald Trump quickly amplified the conversation, drawing a surge of support from cannabis executives like Kyle Sherman of Flowhub and Trulieve CEO Kim Rivers. Rivers, who attended post-election celebrations for Trump, publicly criticized Bank of America after it claimed it wouldn’t shut down accounts based on political beliefs.

The momentum continued when Wyoming Senator Cynthia Lummis took the issue to Fox Business, specifically highlighting the struggles of the cannabis industry. For Sherman, this marked a turning point.

“At that point, I knew that we were getting some visibility and attention,” he said.

Senate Banking Committee Hears the Case

Sherman didn’t just rely on media buzz—he took his concerns directly to the Senate Banking Committee. While testifying in Washington, D.C., he outlined the financial roadblocks facing legal cannabis operators and their employees.

He shared how a Flowhub engineer was denied a mortgage simply because his paycheck came from a cannabis-related business. And that was just one example. Employees have also encountered:

  • Personal and business account closures.
  • Denials for home equity loans and refinancing.
  • Higher fees and predatory lending terms.
  • Risk of asset seizures.

Even Flowhub itself has been repeatedly “debanked,” forcing the company to scramble for alternative banking solutions. Sherman urged lawmakers to finally bring the SAFER Banking Act to a Senate vote to prevent further financial discrimination.

A Push for Firsthand Testimonies

Following Sherman’s testimony, Senate Banking Committee Chair Tim Scott encouraged cannabis workers and businesses to share their experiences. Flowhub took the initiative, launching a platform to gather stories from those impacted.

Over 110 accounts flooded in, spanning every corner of the industry. Some came from retailers and dispensary owners, while others came from unexpected sources—like snowplow operators who provide services to cannabis businesses.

“It disrupts your entire business,” Sherman said. “We’ve learned to spread our accounts across multiple institutions now, so if one drops us, we can move to another.”

Even Tech Companies Aren’t Safe

It’s not just cannabis growers and dispensaries feeling the heat. Ancillary businesses—those that don’t handle the plant directly—are also being cut off.

Take Rank Really High, a Massachusetts-based e-commerce platform for marijuana retailers. The company has no direct involvement with cannabis sales, yet that hasn’t stopped major financial providers from pulling the plug.

CEO Dan Mondello revealed that companies like Paychex, Intuit QuickBooks, and Bills.com all stopped servicing his business, citing its cannabis connections. Even banks that market themselves as cannabis-friendly haven’t been reliable.

“They decided to pull the plug at the last minute,” Mondello said, recalling how his company was denied a bridge loan despite meeting all qualifications.

Big Banks Continue to Shut Doors

For major cannabis operators, the financial roadblocks don’t stop at business accounts. Personal banking relationships are being severed, too.

Glass House Brands co-founder Graham Farrar has had personal accounts shuttered at Wells Fargo, Bank of America, and JPMorganChase. He was even denied a mortgage, forcing him to accept a higher-interest loan from a smaller institution.

“Every month I’m paying 30% more than somebody else would pay,” Farrar said.

It’s a familiar story for Kyle Kazan, another Glass House co-founder, whose Citi AAdvantage Business World Elite Mastercard was canceled in November. The reason? “An association with a cannabis company.”

The consequences extend beyond inconvenience. Cash-heavy cannabis businesses are prime targets for theft and violence.

“This pales in comparison to people that have literally lost their lives,” said Kazan, a former police officer. “This is such a failure of government.”

Entrepreneurs Left Without Options

Jason Vedadi, CEO of Story Cannabis, faced a personal nightmare when U.S. Bank moved to shut down all his family accounts—including credit cards.

After pushing back, his wife was allowed to keep one personal account, but Vedadi was forced to close 17 business accounts.

“I’ve been banking with U.S. Bank since I was 18 years old,” he said, reflecting on the loss of a decades-long relationship.

Others, like Andrew Sablon of Dejavu Cannabis Co., have been left financially stranded. Since opening his store in 2019, Credit Union One, Key Bank, and Alaska USA Federal Credit Union have all closed his personal accounts and credit cards.

With a neighboring bar that drove foot traffic now closed, business has slowed. But getting a loan to stay afloat? Nearly impossible.

“There’s no way I can even get a business loan so I can figure things out and have a little cushion,” Sablon said. “It’s just terrifying.”

Lingering Concerns in the Industry

Even for those who haven’t faced recent banking shutdowns, past experiences have left a lasting mark.

Before California fully legalized recreational cannabis, Jesse Redmond’s medical collective was debanked twice, forcing him to rely on prepaid, high-fee gift cards for transactions.

Now, as an executive at Leef Brands, he worries about how his cannabis industry ties might impact future financial decisions.

“I don’t know how working for a state-legal operator like Leef would affect me if I was trying to buy a car or get a mortgage,” he admitted. “But it’s definitely something that’s on my mind.”

The banking struggles aren’t new, but the conversation around them is louder than ever. Whether that will translate to real policy change remains to be seen.

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Lars Beckers

Lars Beckers is a distinguished senior content writer at MMJ Gazette, bringing a wealth of experience and expertise to the realm of medical marijuana and cannabis-related content. With a deep understanding of the industry and a passion for sharing knowledge, Lars's articles offer readers comprehensive insights and engaging narratives in the dynamic world of cannabis. Known for his meticulous research, clarity of expression, and commitment to delivering high-quality content, Lars brings a seasoned perspective to his work, educating and informing audiences on the latest trends and developments in the field.

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