Since the 2018 Farm Bill legalized it, hemp has been treated by some financial institutions as the “safe” cousin of cannabis banking — a federally legal commodity that let banks and credit unions serve plant-touching businesses without wading into Schedule I territory. That distinction is about to blur.

Will Banks Close Hemp Accounts?

Opinions diverge on how far institutions will go.

Joseph E. Silvia, a former Federal Reserve lawyer who advises banks and fintechs on cannabis banking and other regulatory matters at Duane Morris, expects a pullback. “If the hemp ban moves forward, I do expect to see the banking industry tighten the reins on any existing hemp-related customers, potentially de-banking them altogether based on the risk appetite of the particular bank,” he says over email.

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