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Industry Landscape
The cannabis FinTech industry is rapidly evolving, driven by increasing state-level legalization in the US and the persistent challenges cannabis businesses face in accessing traditional financial services. It's characterized by innovation in compliance, payment solutions, and marketplace models. Despite federal prohibition creating hurdles, the market is experiencing significant growth, with specialized platforms bridging the gap between financial institutions and cannabis-related businesses, focusing on risk mitigation and compliant operations.
Total Assets Under Management (AUM)
Legal Cannabis Market Size in United States
~$29.4 Billion (2023)
(14% to 20% (CAGR 2023-2030) CAGR)
- State-level legalization expanding.
- Increased consumer demand.
- Growth in medical and adult-use segments.
Total Addressable Market
$50 Billion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Blockchain and Distributed Ledger Technology (DLT)
Blockchain and DLT can enhance transparency and security in financial transactions, supply chain tracking, and compliance reporting within the cannabis industry, reducing fraud and improving auditability.
Artificial Intelligence (AI) & Machine Learning (ML) for Compliance
AI and ML can automate and refine compliance monitoring, fraud detection, and risk assessment by analyzing vast datasets from seed-to-sale and financial transactions, enabling proactive regulatory adherence.
Embedded Finance & Banking-as-a-Service (BaaS)
Embedded finance and BaaS allow non-financial platforms to offer banking services directly, simplifying financial access for cannabis businesses and integrating financial tools into their operational workflows.
Impactful Policy Frameworks
SAFET Act (Secure and Fair Enforcement Banking Act) - Ongoing Legislative Efforts
The SAFE Banking Act aims to provide a safe harbor for financial institutions serving legitimate cannabis businesses, preventing federal penalties for banks that work with state-legal cannabis entities.
Passage of the SAFE Banking Act would significantly de-risk cannabis banking for financial institutions, potentially leading to increased participation and broader access to services for cannabis businesses.
DEA Rescheduling of Cannabis - Proposed Rule (2024)
The U.S. Drug Enforcement Administration (DEA) has proposed a rule to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act, acknowledging its medical use and lower abuse potential.
Rescheduling would reduce the tax burden (280E) on cannabis businesses, significantly improving their profitability, and could encourage more traditional financial institutions to enter the market.
FinCEN Guidance on Marijuana-Related Businesses (Updated as needed)
The Financial Crimes Enforcement Network (FinCEN) provides guidance to financial institutions on how to comply with Bank Secrecy Act obligations when serving marijuana-related businesses, including specific SAR (Suspicious Activity Report) filing requirements.
Ongoing FinCEN guidance directly impacts the compliance burden and operational procedures for financial institutions engaging in cannabis banking, requiring robust monitoring and reporting systems like those offered by Green Check Verified.
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