The move makes room for institutional access as the state prepares to kick off its adult-use market.
A Delaware law meant to protect financial institutions and other service providers working with cannabis plant-touching companies has made it across the governor’s desk, according to Marijuana Moment.
Gov. John Carney signed the bill, which amends Title 16 of the Delaware Code, last week. The new bill shields banks, credit unions and other financial service providers from state-level prosecution for working with licensed cannabis businesses.
According to the bill’s text, entities are not subject to criminal prosecution “solely by virtue of providing any such service in compliance with Delaware law.” The protection extends to state and federally chartered banks, credit unions, armored car services licensed by the State Bank Commissioner and certified public accountants.
The legislation comes as Delaware prepares to launch its recreational market and expand its medical cannabis program. Interest in the new market appears high, as officials recently reported receiving more than 1,200 applications for the available marijuana business licenses.
But the plant and its derivatives – with the exception of hemp – still remain federally illegal. That continues to complicate banking access nationwide for operators. Delaware joins other states in implementing similar measures while progress on federal cannabis banking protections stalls in Congress. Carney has been a fair ally when it comes to signing bills that have to do with cannabis.
The banking issue has wide reach. A recent report from Whitney Economics projected that banks could generate more than $2 billion in revenue from marijuana industry interest payments by 2035.
Delaware plans to issue 125 cannabis licenses, including permits for cultivators, manufacturers and retailers. The state’s six existing medical marijuana companies have also applied for recreational permits, which are expected to be granted next month, according to the state’s cannabis regulators.
The state will use a lottery system to award 30 retail licenses later this year, with the adult-use market projected to launch in March 2025.
The move makes room for institutional access as the state prepares to kick off its adult-use market, which is billed for a 2025 rollout. Read More