Delaware Lawmakers Pass Bill to Enable Financial Services for Cannabis Businesses

LOS ANGELES- Delaware lawmakers recently passed legislation establishing protections for banks and other financial institutions to work with state-legal cannabis companies as the state prepares to launch its adult-use market.

Protections for Financial Institutions

The bill, passed last month, provides legal protections for banks and financial institutions serving cannabis businesses. It clarifies that offering financial services to legal cannabis businesses is lawful under state law, addressing a significant barrier faced by the industry.

State Treasurer Colleen Davis called the legislation “a critical step forward for Delaware’s cannabis industry.” She stated, “By ensuring safe access to banking services, we are empowering legitimate businesses to operate transparently and securely.”

State Rep. Ed Osienski (D), one of the bill’s sponsors, emphasized the challenges faced by cannabis businesses in states where cannabis is legal. He noted that dispensaries and banks have struggled with legal uncertainty regarding financial and accounting services.

“This uncertainty not only undermines the operations of state-compliant dispensaries but also hinders their access to basic business functions such as banking, acquiring loans, or paying taxes,” Osienski said. “We want Delaware’s safe and regulated industry to out-compete the illegal market. By providing dispensaries with a secure avenue to banking and compliance services, we empower them to contribute positively to our economy, keep costs down for the industry and customers, employ local talent, and fulfill their tax obligations.”

State Sen. Trey Paradee (D), who sponsored the legislation in the Senate, added, “At the end of the day, cannabis retailers in Delaware are small businesses. They will be in our communities. They will hire Delawareans. They will pay their taxes. They will contribute to the economic development of this state. But with an over-reliance on cash transactions, retailers are at a disadvantage in terms of their banking, compliance, and safety needs. With the passage of this legislation, the state can ensure that these types of businesses have a clear path towards access to those critical services.”

The bill still requires final approval from Gov. John Carney (D).