Cannabis is one of the fastest-growing industries in the United States. However, federally regulated banks are virtually nonexistent in the space. Consequently, cannabis is largely a cash business. “Workarounds” to the banking deficit undermine the objectives of money laundering laws, and those dealing with large amounts of cash risk their physical safety. Measures by the federal government making it easier for banks to service the industry could alleviate those public safety concerns.

When U.S. Attorney General Jeff Sessions, at the beginning of the year, rescinded policies (known as the “Cole Priorities”) implemented under President Obama to offer federal enforcement guidelines of marijuana-related activities in states with marijuana legislation, it exposed cannabis industry-operators to a greater potential for criminal, civil and safety liabilities. The Cole Priorities established clear boundaries for cannabis industry participants to operate without the risk of prosecution for violating federal laws pertaining to marijuana activities, such as the Controlled Substances Act, which criminalizes marijuana as a Schedule 1 drug. As a result, the Cole Priorities were a catalyst for the exponential growth of the cannabis industry that occurred after their issuance in August 2013.