What The Federal Green Light on Hemp Means For Banks

Types : Bylined Articles

Many banks have hesitated or refused to work with hemp companies due to uncertainty about the interplay between the legality of hemp and the illegality of marijuana under federal law.

On Dec. 3, a group of key federal banking regulators — the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network and the Office of the Comptroller of the Currency — issued the first formal federal guidance clarifying that hemp is a legal crop and that, unlike its marijuana counterpoint, working in the hemp industry does not constitute illegal activity.

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