A.Y. Strauss partner Sahar Ayinehsazian recently spoke to Forbes.com about the upcoming changes being made to the federal definition of hemp and banning of hemp products, and what these new regulations will mean for banks and financial institutions.

With hemp slated to lose its status as a “safe” commodity by December 2026, banks are left without clear federal guidance on the rules for cannabis accounts.

Speaking to Forbes, Sahar noted that she anticipates banks will initially take a more measured approach on how to navigate closing or keeping existing hemp accounts.

“At the very least, it’s going to make FIs pause and recalibrate, as would be the case in the instance of a major regulatory shift in any industry. That wait-and-see posture is reinforced by the fact that additional regulatory updates many in the industry expected haven’t yet materialized, leaving exactly how the shift will play out ‘a bit murky at the moment.’”

Sahar also told Forbes that she expects onboarding and ongoing due diligence for hemp operators to tighten, but in increments, adding that she doesn’t think a wholesale purge would be warranted. She also noted that pausing new lending may be possible, but that for existing customers, communication on how to proceed in the wake of these new changes is key.

“I definitely don’t think that a blanket closure of all hemp accounts, especially those who have proven themselves to be compliant and transparent operators, is warranted.”

Read the full article here.