In “As New York Legalizes Marijuana, What Does That Mean for Banks?” (19 April 2021, Thomson Reuters), Gabe Hidalgo discusses the future of cannabis banking reform and whether there is light at the end of the regulatory tunnel.

According to Gabe, despite licensing, regulatory oversight, and legal frameworks taking time to evolve, “for any financial institution in New York that is looking to offer services to a licensed dispensary or other cannabis legal vendors, now is the time to start reviewing your current compliance programs.” Further, Gabe notes that New York’s legalization is significant, highlighting that “as more states move to legalize, the economic pressure to augment state budgets with taxes on recreational cannabis will continue to grow. That may create an environment where more and more states allow recreational cannabis to be sold legally in order to expand a shrinking tax base.”

Read the full Q&A in Thomson Reuters.