Marijuana Banking: Need-to-Know Details on the DOJ’s Rescheduling
By Robert Wilkins
June 2, 2026
The U.S. Department of Justice (DOJ) recently reclassified certain classes of drug products containing marijuana from Schedule I to Schedule III under the federal Controlled Substances Act (CSA), following through on an Executive Order issued by President Trump in December 2025 directing the DOJ to expedite the rescheduling of marijuana.
Under the CSA, Schedule III substances are considered to have a lower potential for abuse than Schedule I or II substances and have accepted medical uses in the United States. This distinction may also influence how financial institutions assess the risks associated with certain marijuana-related businesses.
What the New Rescheduling Covers
The DOJ’s order reclassifies marijuana, marijuana extracts, and other compounds derived from marijuana plants (excluding hemp) to Schedule III, but only in limited circumstances. Specifically, the rescheduling applies to substances that are:
- Included in FDA-approved drugs; or
- Manufactured and distributed pursuant to a state medical marijuana license.
According to the DOJ order, forty states currently regulate the use of marijuana for medical purposes. Entities that handle FDA-approved drugs containing marijuana or transfer marijuana to patients, including dispensaries, will be required to register with the Drug Enforcement Administration (DEA) to comply with federal law and regulatory requirements.
A First Step in a Broader Process
The rescheduling of this narrow subset of marijuana-related substances comes ahead of a DEA administrative hearing scheduled for June. The hearing represents an early step in the rulemaking process that is expected to lead to consideration of rescheduling the broader category of marijuana-related substances.
While the outcome of that process remains uncertain, the DOJ’s action signals continued movement toward broader federal reconsideration of marijuana’s classification under the CSA.
Potential Impact on Marijuana Banking
The rescheduling of marijuana is expected to have some implications for the marijuana banking industry, as there will now be a tier of marijuana related businesses that will be handling marijuana in compliance with federal law. While there will still be Bank Secrecy Act (BSA) and anti-money laundering (AML) risks associated with these entities, overall, financial businesses operating in compliance with federal law may present a lower risk profile for financial institutions than businesses that have been handling Schedule I substances.
At the same time, many states permit both medical and recreational marijuana use and may authorize businesses to distribute marijuana for either purpose. Because adult-use recreational marijuana is not covered by the DOJ’s order, businesses engaged in those activities, even when licensed under state law, would continue to operate in violation of federal law. Financial institutions that choose to provide services to such businesses should continue to carefully assess the associated risks.
Questions Remain for Payment Networks
It remains to be seen what effect this initial rescheduling step will have on payment networks, which continue to present a significant barrier to broader participation by marijuana-related businesses in the financial services system.
Most credit and debit card networks currently restrict or prohibit marijuana-related transactions. We expect payment networks to evaluate their policies in light of the DOJ’s order and the possibility of broader rescheduling in the future. However, the timing and scope of any policy changes remain uncertain.
Final Takeaway
The DOJ’s rescheduling order is limited in scope, but it marks a significant development in the ongoing federal treatment of marijuana-related products. For financial institutions and the marijuana banking industry, the change may create new opportunities to serve certain federally compliant marijuana-related businesses while reinforcing the need for continued diligence when evaluating businesses involved in recreational marijuana activities.
About the Author
Robert Wilkins
Robert Wilkins is a Senior Associate Attorney at SW&M with experience in regulatory compliance, trust and decedent accounts, operational matters and cannabis banking. Robert was instrumental in creating the firm’s Cannabis Banking practice. Additionally, he co-authored SW&M’s California Trust Accounts […]
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