Friday, September 12, 2025

US Banks Begin to Reject Trading in US-Based Cannabis Issuers

Times are about to get tougher for cannabis investors yet again. It seems US-based banks are about to begin cracking down on investments in “non-permitted cannabis related business securities.” The first bank to make such an announcement is Bank of New York Mellon Corp (BNY Mellon), who yesterday sent a notice to clients.

BNY Mellon, a bank with $35.5 trillion in assets under custody and who owns Pershing LLC, one of the largest clearinghouse’s for securities in the US, made the announcement yesterday morning. Within, it indicated that as of November 30, the firm will no longer allow for the trading in securities of US-operating cannabis related businesses. BNY Mellon also advised against the purchase of any of these securities during the grace period, indicating that they reserve the right to decline any trade.

Specifically, this would prevent its subsidiaries from touching any Canadian Securities Exchange (CSE) or OTC listed entities that are operating in the United States and directly dealing with cannabis due to the federal status of the plant. The details released by the firm indicated that any security listed on the New York Stock Exchange, NASDAQ, Toronto Stock Exchange, or TSX Venture already complies with the updated regulations.

The latest news comes at a time in which US-based operators are struggling to find additional sources of funding as sentiment in the sector declines. As of late, funding has come from groups such as Torian Capital and Gotham Green Partners, often at unfavourable rates to the issuers. Recent examples include the recent funding secured by iAnthus Capital (CSE: IAN), as well as transactions that have yet to close with Tilt Holdings (CSE: TILT) and Harvest Health (CSSE: HARV).

The latest development in the US cannabis space isn’t likely to result in any further capital coming to the sector in the near term, placing further strain on the public issuers. Firms are more reliant than ever on the SAFE Banking Act to pass through the Senate this fall as doors continue to close on US based equities.


Information for this commentary and analysis was found via Sedar and the linked sources in the article. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

PI Financial: US Cannabis Sector Showcased Strong Q2 Earnings

Earlier this month PI Financial came out with their post-second-quarter U.S cannabis update, in which...

Sunday, September 18, 2022, 01:20:00 PM

Spotlight Series: Brady Cobb On The State Of US Cannabis

Back in August, we sat down with Florida native Brady Cobb, whom is known quite...

Sunday, November 8, 2020, 09:00:00 AM

Democrats Take Aim At “Big Cannabis” In Proposed CAOC Legislation

It appears that the federal legalization of cannabis in the United States might not be...

Tuesday, September 7, 2021, 05:33:00 PM

Senator Crapo Wants to Hold Cannabis Banking Reform Vote

Today POLITICO is reporting, Senate Banking Chairman Mike Crapo wants to hold a vote on...

Friday, September 13, 2019, 01:25:07 PM

Canadian Cannabis: It’s Not Simple To Buy US Operators – The Daily Dive feat Jason Spatafora

For our Sunday edition of The Daily Dive, we sit down with Jason Spatafora, who’s...

Sunday, March 7, 2021, 01:30:00 PM