Delaware law protects banks that work with marijuana businesses

Financial institutions that serve licensed marijuana businesses in Delaware will be protected from state-level prosecution under a bill that Delaware’s governor recently signed into law.

The new law – which Gov. John Carney signed Oct. 9 – protects banks, credit unions, armored-car services and accounting firms from state prosecution for working with regulated cannabis operators.

“This Act aims to facilitate the operation of cannabis-related businesses by helping to ensure that such businesses have access to necessary financial and accounting services,” according to the bill’s synopsis.

Delaware, which is expected to launch adult-use cannabis sales in 2025, has received more than 1,200 applications for business licenses.

The state will conduct a lottery to determine who will receive the 125 licenses:

• 30 for retailers.
• 60 for cultivators.
• 30 for manufacturers.
• 5 for testing labs.

The banking-protection legislation from Rep. Ed Osienski and Sen. Trey Paradee, both Democrats, is designed to help licensed operators compete against 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,” Osienski told Marijuana Moment.

Although Democratic leadership in the U.S. Senate has called the Secure and Fair Enforcement Regulation (SAFER) Banking Act a priority, time is running out for lawmakers to approve the legislation in the current session.

In the absence of SAFER, the new Delaware law aims to provide some protection to the state’s marijuana businesses.