Mastercard (MA.N) has directed financial institutions to cease processing marijuana transactions on its debit cards, dealing a setback to the already marginalized US cannabis industry. Despite certain states legalizing cannabis for medical and recreational use, federal illegality prevents most banks from serving cannabis companies.
A company spokesperson stated, "Upon learning of this matter, we promptly conducted an investigation. Per our protocols, we instructed affiliated financial institutions that offer payment services to cannabis vendors and link them with Mastercard to discontinue these operations." The spokesperson added, "Given the federal government's stance on cannabis sales, our systems do not permit such purchases."
Brady Cobb, CEO of Sunburn Cannabis, expressed that this decision further harms the state-sanctioned cannabis sector and individuals seeking legal access. Verano's (VRNO.CD) President, Darren Weiss, pledged ongoing efforts for cannabis reform through discussions with officials and stakeholders to foster lawful cannabis expansion nationwide.
Recently, Senator John Cornyn voiced skepticism about Majority Leader Chuck Schumer's ambitions to pass the marijuana banking bill, deeming it "wishful thinking." The SAFE Banking Act, a pivotal legislation, aims to facilitate banking services for the cannabis industry.
Bloomberg News initially reported Mastercard's resolution.
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