Banking Barriers May Persist Despite Historic Change
President Trump appears ready to make a historic shift in federal drug policy that could reshape Nevada’s billion-dollar cannabis industry. Multiple sources confirm the administration is “very strongly” considering rescheduling marijuana from Schedule I to Schedule III—a move that would mark the first time the federal government officially recognizes cannabis has medical benefits.
But here’s the catch that matters to Nevada’s cannabis businesses: even with this change, your local dispensary still can’t get a regular bank account.
What’s Actually Changing
Moving marijuana to Schedule III puts it in the same category as codeine and anabolic steroids—drugs considered to have “moderate to low potential for physical and psychological dependence.”
This represents a dramatic shift from Schedule I, where marijuana currently sits alongside heroin and LSD as drugs with “no currently accepted medical use.”
Trump told reporters in the Oval Office on Monday:
“We are considering that, yeah. Because a lot of people want to see it, the reclassification, because it leads to tremendous amounts of research that can’t be done unless you reclassify. So we are looking at that very strongly.”
The change would open doors for medical research that have been locked for decades. Scientists could finally study marijuana’s potential benefits without jumping through the current maze of federal restrictions.
The Banking Problem Remains
Here’s where Nevada businesses hit a wall. Even under Schedule III, marijuana would still be federally illegal for recreational use. That means banks would continue to face potential federal prosecution for money laundering if they serve cannabis businesses—even those operating legally under Nevada law.
Tyler Klimas, former executive director of the Nevada Cannabis Compliance Board, testified to Congress that:
“In Nevada, our regulation of cannabis risked disrupting the state’s entire relationship with its banking partner, forcing us to spend countless hours to find creative workarounds and issue guidance to the industry on what language to avoid putting on payment notices.”
The American Bankers Association has been crystal clear on this point.
In a recent statement, they said:
“It’s important for policymakers to know that any potential decision to reclassify cannabis has no bearing on the legal issues around banking it. Cannabis would still be largely illegal under federal law, and that is a line many banks in this country will not cross.”
Real Benefits for Nevada Businesses
While banking remains frozen, rescheduling would deliver one massive benefit to Nevada’s cannabis operators: tax relief. Currently, a federal tax provision called 280E prevents marijuana businesses from deducting normal business expenses like rent, salaries, and marketing costs.
Some cannabis companies face effective tax rates as high as 80 percent.
Under Schedule III, that crushing tax burden disappears. Nevada businesses could finally deduct expenses like any other company, potentially saving millions of dollars annually that could be reinvested in operations, employees, and expansion.
The SAFER Banking Solution
Nevada’s entire congressional delegation—Democrats and Republicans alike—supports the SAFER Banking Act, which would actually solve the banking problem by providing legal protection for financial institutions serving state-licensed cannabis businesses.
Without SAFER Banking, Nevada dispensaries will continue operating largely in cash, creating security risks for employees and customers while making it harder for regulators to track money and prevent illegal activity.
Opposition Voices
Not everyone’s celebrating. Some congressional Republicans worry rescheduling will normalize marijuana use without adequate safeguards.
Several House Republicans wrote Trump, urging him to keep marijuana in Schedule I, arguing:
“There is no adequate science or data” to support the change and warning that “marijuana, while different than heroin, still has the potential for abuse and has no scientifically proven medical value.”
(Note: This writer has attended speeches given by marijuana users with degenerative diseases who testify that cannabis gives them relief from symptoms and a better quality of life. We might not have “scientifically proven medical value” because of the scheduling, which limits research.)
Critics also fear Schedule III could allow big pharmaceutical companies to dominate the market with synthetic THC products while subjecting current dispensaries to stricter federal pharmaceutical regulations.
What Conservatives Should Watch
From a limited government perspective, this issue presents interesting tensions. States’ rights advocates might applaud letting Nevada manage its own cannabis policies without federal interference. But others worry about expanding any federal recognition of marijuana, even for medical purposes.
The key question for conservatives: Does rescheduling represent appropriate federal restraint by acknowledging medical benefits, or does it open the door to broader federal involvement in what should remain a state issue?
Nevada conservatives should push their representatives to support the SAFER Banking Act regardless of rescheduling. Legal businesses operating under state law shouldn’t be forced into dangerous cash-only operations because of federal banking restrictions. That’s not limited government—it’s contradictory government.
Watch for Trump’s potential executive order announcement, possibly as soon as Thursday. But remember, even if he signs it, the DEA rulemaking process could take months or years. And without congressional action on banking, Nevada’s cannabis businesses will still be stuck between state legality and federal restrictions.
Update: Trump signed an executive order to expedite marijuana rescheduling on Thursday.
.@POTUS on rescheduling marijuana: You see polls that 82% of the people want this. I have friends that are really, really sick… and they realize that this is something that makes them feel better, without all of the side effects. pic.twitter.com/3ur4CV23VF
— Rapid Response 47 (@RapidResponse47) December 18, 2025
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
