U.S. Cannabis Industry Finds New Support in Washington, D.C., as Banking Reform Push Gains Momentum

The U.S. cannabis industry, long plagued by financial discrimination and debanking issues, may have finally caught the attention of Washington lawmakers. After years of being locked out of traditional banking services, industry leaders are seeing renewed momentum for cannabis banking reform on Capitol Hill.

Debanking Controversy Resurfaces Nationally After Joe Rogan Podcast and Trump’s Viral Comments

The national conversation about debanking reignited in December when venture capitalist Mark Andreessen and podcast host Joe Rogan discussed the issue, suggesting that conservatives were being unfairly targeted by financial institutions.

The debate quickly gained political traction when former President Donald Trump weighed in with charged remarks, prompting a viral campaign led by prominent cannabis executives. Among them were Kyle Sherman, founder of Flowhub, and Kim Rivers, CEO of Trulieve Cannabis Corp.

Trulieve CEO Blasts Bank of America for Contradictory Statements on Conservative Banking Practices

Kim Rivers, who attended several inauguration events following Trump’s election victory, took to social media to criticize Bank of America. The financial giant had claimed on X (formerly Twitter) that it welcomes conservatives and would never close accounts for political reasons. Rivers, however, called out the bank’s hypocrisy, referencing the cannabis industry’s ongoing struggles with debanking.

Sen. Cynthia Lummis of Wyoming Highlights Cannabis Industry Debanking Crisis on National Television

The industry gained further visibility when Wyoming Republican Senator Cynthia Lummis addressed the issue on Fox Business, specifically mentioning the U.S. cannabis industry’s struggles with banking access.

Flowhub CEO Testifies Before Senate Banking Committee, Urges Action on SAFER Banking Act

The following day, Kyle Sherman testified before the Senate Banking Committee, providing firsthand accounts of his company’s debanking challenges. Flowhub, a Denver-based cannabis software firm, has faced multiple account closures despite being a federally legal business.

Sherman told lawmakers that his employees suffer routine financial discrimination, including:

Personal and business account closures

Denials of home equity loans and refinancing

Predatory lending terms with excessive fees and rates

Asset seizures

He shared a specific incident where a senior Flowhub engineer was denied a mortgage solely because his income came from the cannabis industry—a near-devastating blow to the employee’s family.

Sherman called on the Senate to advance the SAFER Banking Act, which would protect legal cannabis businesses from such financial discrimination.

Senate Banking Committee Launches Campaign to Collect Cannabis Industry Debanking Stories Nationwide

In response, Senate Banking Committee Chair Tim Scott (R-South Carolina) invited cannabis industry workers and businesses to share their debanking experiences. Flowhub quickly developed a centralized hub to gather testimonials, collecting over 110 stories from across the cannabis supply chain.

These submissions included accounts from unexpected players, such as snowplow operators who were denied services because their clients were cannabis businesses.

Rank Really High Cannabis Tech Company Suffers Payroll Service Shutdowns and Loan Denials

The debanking crisis extends beyond dispensaries and growers to technology companies serving the cannabis industry. Massachusetts-based Rank Really High, a cannabis e-commerce platform, reported severe disruptions to its business operations.

Despite being profitable and legal, the company lost payroll services from major providers, including:

Paychex

Intuit QuickBooks

Bills.com

Additionally, Rank Really High was denied a bridge loan from a bank that branded itself as “cannabis-friendly,” only for the bank to abruptly pull out at the last minute.

“They decided to pull the plug at the last minute,” said Rank Really High co-founder and CEO Dan Mondello, who declined to name the institution.

Glass House Brands Co-Founder Blames Big Banks for Costly Home Loan Rejections and Financial Struggles

Graham Farrar, co-founder of Glass House Brands, shared that major banks such as Wells Fargo, Bank of America, and JPMorganChase closed his personal accounts without warning. In one instance, JPMorganChase even canceled his personal credit card.

Farrar’s banking troubles extended to homeownership. Denied a mortgage by major lenders, he was forced to use a smaller bank, resulting in a higher interest rate. “Every month I’m paying 30% more than somebody else would pay,” he said.

U.S. Bank Shuts Down Family Accounts of Story Cannabis CEO Jason Vedadi, Forcing Business Closures

Jason Vedadi, CEO of Story Cannabis, recounted his ordeal with U.S. Bank, which attempted to close all his family accounts, including credit cards. After prolonged negotiations, his wife was allowed to retain her personal account—only after Vedadi removed his name and closed 17 business accounts.

Alaska Cannabis Operator Faces Credit Card Closures and Business Hardships on Remote Kodiak Island

In Alaska, Dejavu Cannabis Co. owner Andrew Sablon faced repeated closures of his personal bank accounts and credit cards by local institutions, including Credit Union One and Key Bank.

Sablon’s situation worsened when a neighboring bar that brought him significant foot traffic closed in November, leaving him with dwindling revenue and no access to business loans.

Industry Analyst Jesse Redmond Still Haunted by Banking Problems from California’s Pre-Legalization Era

Even those no longer operating directly in cannabis feel the lasting impact of debanking. Jesse Redmond, now an industry analyst, recalled how his medical cannabis collective was twice debanked before California legalized recreational sales in 2018.

Redmond described the struggle of running a business on prepaid gift cards due to banking bans, recounting how he once had to purchase bulk glass jars for his business from Walmart using high-fee cards.

Calls for Banking Reform Intensify as Industry Awaits Senate Action on the SAFER Banking Act

Despite years of advocacy, the cannabis industry remains vulnerable to predatory financial practices, violent crime due to cash-heavy operations, and operational instability. Industry leaders insist that passing the SAFER Banking Act is essential for public safety and economic fairness.

As Debanking Stories Pour In, Cannabis Industry Pushes for Senate to Finally Pass Reforms

With over 110 testimonials collected and mounting political attention from both sides of the aisle, cannabis businesses hope that 2025 could finally be the year for reform. But for many operators, the costs of inaction—both personal and professional—continue to pile up.