Mastercard has decided to ban transactions for the purchase of cannabis (marijuana) on its debit card. It is considered a major setback for the cannabis industry in the United States.
The cannabis industry is already facing numerous challenges in the American financial system. Most banks refuse to provide services to cannabis companies due to federal laws that still classify marijuana as illegal, despite its legalization in some states for medicinal and recreational use.
The move by Mastercard further restricts the ability of cannabis businesses to conduct financial transactions, making it difficult for them to operate and grow their businesses. The company cited federal laws that consider cannabis sales illegal as the reason for implementing the ban.
Leaders in the cannabis industry expressed their disappointment and concern over the impact of Mastercard’s decision. They continue to advocate for cannabis reform at the federal level, including the passage of the SAFE Banking Act, which would provide much-needed banking services to the cannabis industry.
Republican Senator John Cornyn recently dismissed Majority Leader Chuck Schumer’s plan to pass a marijuana banking bill, describing it as “wishful thinking.” Despite these challenges, industry stakeholders remain committed to advancing conversations and working with elected officials to support the growth of a safe and legal cannabis industry across the United States.
