Why U.S. Banks Still Won’t Work With Marijuana Businesses After Trump’s Executive Order

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Perspective Vlog

Many people assume that once a president signs an executive order, industries immediately feel the impact.
But when it comes to marijuana and banking, that assumption doesn’t match reality.

Even after Donald Trump issued an executive order signaling a softer federal stance, most U.S. banks still refuse to work with marijuana businesses.
The reason is simple: executive orders don’t change federal law — and banks operate under federal law first.

Executive Orders Do Not Change Federal Statutes

An executive order can guide how federal agencies enforce existing laws, but it cannot rewrite them.

Marijuana remains illegal under the Controlled Substances Act (CSA) at the federal level.
As long as that law stands, revenue generated from marijuana sales is still considered proceeds from federally illegal activity.

For banks, that distinction matters more than political signals.

The Real Barrier: Federal Banking Compliance

Banks in the United States are governed by strict federal compliance systems, including:

• The Bank Secrecy Act (BSA)

• Anti-Money Laundering (AML) laws

• Know Your Customer (KYC) requirements

Under these rules, banks must verify that deposited funds come from legal sources under federal law, not just state law.

If a bank knowingly accepts money tied to federally illegal activity, it risks:

• Criminal liability

• Massive regulatory fines

• Loss of FDIC insurance

• Removal from the Federal Reserve system

No executive order removes those risks.

Why “Some Banks” Appear to Work With Cannabis

This is where confusion often arises.

A small number of financial institutions do work with marijuana-related businesses, but they are typically:

• Local credit unions

• State-chartered institutions with limited federal exposure

• Specialized high-risk compliance banks

These services come with:

• Extremely high fees

• Heavy reporting requirements

• No guarantee of long-term stability

This is not true banking normalization — it is controlled risk isolation.

Why SAFE Banking Act Matters More Than Any Executive Order

The SAFE Banking Act is critical because it would do what executive orders cannot:
change the legal risk for banks directly through legislation.

If passed, it would explicitly protect financial institutions from penalties for serving state-legal marijuana businesses.

Until that happens, most banks will remain cautious — regardless of political administration.

The Reality for Cannabis Businesses Today

Right now, the marijuana industry operates in a legal contradiction:

• Legal at the state level

• Illegal at the federal level

• Supported politically

• Restricted financially

This forces many businesses to rely on cash-heavy operations, increasing risk and limiting growth.

Why This Situation Persists

Banks are not making moral judgments.
They are making risk calculations.

From a banking perspective, no amount of political support outweighs federal criminal liability.

Until marijuana is removed from federal prohibition or explicitly protected through legislation, most banks will continue to stay on the sidelines.

A Final Perspective

Executive orders signal direction.
Laws determine action.

Until federal law changes, marijuana businesses will continue facing banking barriers — regardless of who occupies the White House.

FAQ

Why don’t banks accept marijuana money if it’s legal in some states?

Because banks must follow federal law, and marijuana is still illegal federally.

Did Trump’s executive order legalize marijuana banking?

No. It changed enforcement tone, not the underlying law.

Can marijuana businesses use any banks at all?

Some can, but usually through high-risk, limited financial institutions with strict controls.

What would actually fix the problem?

Passing federal legislation like the SAFE Banking Act or removing marijuana from federal prohibition.