Are Banks Ready To Serve The Cannabis Industry? What One Expert Says About The Future

As the cannabis industry stands on the brink of potential federal rescheduling, the implications for banking access and financial operations are becoming a central focus. During an exclusive interview with Benzinga, Kevin Hart, founder and CEO of Green Check Verified, shared his thoughts on how these changes could reshape the industry.

Banking Access For Cannabis Businesses

Hart, who will speak at the upcoming Benzinga Cannabis Capital Conference, addressed the current state of banking access for cannabis companies. He noted that while challenges persist, solutions are available for those seeking them.

“There isn't a cannabis business right now that can't get a traditional banking account if they…aren't looking hard enough,” Hart remarked, highlighting the opportunities that exist despite ongoing federal restrictions.

The Impact Of The Safer Banking Act

Hart also delved into the implications of the Safer Banking Act, emphasizing that while the Act may open doors, it won't be a cure-all for the industry’s financial hurdles. He explained the difference between the “Safe” and “Safer” banking models, noting, “Safe is an opt-in model. So all the people serving the cannabis industry today raise their hand and say, ‘I want to do this.’ Under safer, that's an opt-out model. You have to say, ‘I'm not going to do this.'”

According to Hart, this shift could lead to uncertainty as financial institutions decide whether to continue serving the cannabis industry or step away from it. “You're going to see all the banks start to scurry and try to figure out, okay, are we in, we out, we in, we out?” Hart predicted.

Financial Integration and Challenges

As the industry anticipates federal rescheduling, Hart emphasized the need for broader financial integration within institutions. He pointed out that banks will have to adapt to the new regulatory environment.

“Banks exist to lend money. That's their primary purpose. So if they're serving the industry, they're lending to it,” he said.

However, Hart also cautioned that integrating cannabis businesses into traditional financial systems will not be without challenges. According to him, the rescheduling and the Safer Banking Act will require careful navigation by financial institutions as they adjust to new regulations and the growing demands of the cannabis market.

As Hart prepares to share more of his expertise at the Benzinga Cannabis Capital Conference, his insights on banking and financial access will be crucial for industry leaders navigating these complex changes. The conference will serve as a platform for exploring the future of cannabis banking and the broader implications of federal rescheduling on the industry.

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