A replay of Rescheduling vs. Decriminalization – The Movement for Cannabis Legalization and Its Impact on Today’s Market is now available for viewing.
Legal Yet Unbankable: Inside The $100 Billion Underserved Market
Duane Morris partner Joseph Silvia is quoted in the Forbes article, “Legal Yet Unbankable: Inside The $100 Billion Underserved Market.”
Across the U.S., thousands of legal businesses wear the “high-risk” label and are quietly excluded from basic financial services—not because of any wrongdoing, but simply the industries they operate in: cannabis, firearms, crypto, adult content. And few face steeper barriers than cannabis businesses. Even with state-level legalization and proper licensing, most are relegated to bare-bones banking. The full financial stack—lending, investing, credit cards—remains out of reach due to federal prohibition and institutional risk aversion. […]
But the obstacles go far beyond payment friction. Because cannabis remains a Schedule 1 substance, the IRS bars businesses from deducting ordinary expenses like rent, payroll, or marketing—leaving many taxed on gross receipts instead of profit, with effective rates soaring past 70%. “The core obstacle to providing traditional banking services to cannabis businesses is the unresolved conflict between state and federal law,” said Silvia. “Over the past decade, many of these businesses have become legitimate enterprises serving diverse customers. Yet institutions that choose to serve this industry must do so amid regulatory uncertainty, heightened scrutiny, and elevated risk expectations.” […]
Duane Morris at Benzinga Cannabis Capital Conference
Webinar: Rescheduling vs. Decriminalization – The Movement for Cannabis Legalization and Its Impact on Today’s Market
Duane Morris will hold its next Cannabis Webinar, Rescheduling vs. Decriminalization – The Movement for Cannabis Legalization and Its Impact on Today’s Market, on Thursday, May 8, 2025, from 12:30 p.m. to 1:30 p.m. Eastern.
The panel discussion features journalist filmmaker Michele Mitchell, who will examine the history of the cannabis movement, its impact on the current state of the cannabis market, and whether rescheduling or decriminalization would have the most beneficial impact for cannabis as this nascent industry continues to grow.
What New Calif. Law Means For Cannabis Lounges
For years, movies, music and other aspects of popular culture have hailed Amsterdam as the number one destination for openly consuming cannabis purchased from “coffee shops.” […] However, one difference — at least in California where adult use cannabis was legalized in 2016 with the passage of Proposition 64 — is that consumption lounges have been unable to offer prepared noncannabis food and beverages on-site. This changed on Sept. 30, when California Gov. Gavin Newsom signed California A.B. 1775 into law.
Webinar Replay: Legal Challenges and Considerations for Social Consumption Lounges
A replay of Mainstreaming Cannabis: Legal Challenges and Considerations for Social Consumption Lounges is now available for viewing.
Duane Morris Attorneys Recognized by Cannabis Law Report
Tracy Gallegos and Paul Josephson, Duane Morris partners and team leads of the Cannabis Industry Group, are once again recognized in Cannabis Law Report‘s list of Global Top Lawyers.
The list honors cannabis practitioners via the publication’s annual survey of clients and lawyers in the cannabis legal services sector as well as its personal editorial decisions based on its reporting of the industry for nearly 10 years.
Webinar: Legal Challenges and Considerations for Social Consumption Lounges
The Duane Morris Cannabis Industry Group will present a webinar, Mainstreaming Cannabis: Legal Challenges and Considerations for Social Consumption Lounges, on Thursday, September 26, 2024, from 12:30 p.m. to 1:30 p.m. Eastern time.
Continue reading “Webinar: Legal Challenges and Considerations for Social Consumption Lounges”
Filling Credit Risk Gaps for Cannabis Businesses
Tracy Gallegos, partner and team lead of the Duane Morris Cannabis Industry Group, is quoted in American Banker about CTrust’s recently launched Cannabis Trust Score and its impact on the industry. […]
“Until there’s a rescheduling, obtaining traditional banking loans is going to be a significant hardship for plant touching operators,” said Gallegos, referring to cannabis’ classification as a Schedule 1 controlled substance, which exposes banks to potential money laundering investigations, which prevents most banks from lending to cannabis businesses. […]
“Having a company like CTrust provide a credit score is an indicator of credit worthiness, but it won’t do anything to solve any of the issues that the banks are facing in terms of the banks being penalized for engaging in business with what the federal laws still consider an illegal activity.”
Duane Morris’ Cannabis Industry Group Receives Top Honors from Chambers USA and The Legal 500
Duane Morris was nationally recognized by Chambers & Partners USA 2024 for Cannabis, and partners Tracy Gallegos, Seth Goldberg, Paul Josephson and Michael Schwamm were individually honored.
“Duane Morris helps clients across all sectors of the multi-faceted legal cannabis industry. The group has extensive experience with the wide array of issues attendant to legal cannabis business activities, including licensing for cultivation, processing and dispensing; litigation; banking and finance; raising and deploying capital; protecting intellectual property; real estate development and leasing; public company representation and SEC filings; land use and zoning; healthcare and research; taxation; and cross-border transactions.”
The Legal 500 2024 has also placed the Cannabis Industry Group in Tier 1 nationally, with clients noting that “Duane Morris’ cannabis practice is simply the best in the country. They have the most thorough knowledge of our ever-changing industry and its regulatory landscape.”
“What makes Duane Morris unique among peer firms is the entrepreneurial spirit of the cannabis practice, backed up by extensive institutional knowledge and experience of business. They created laws, regulations and precedents that govern and protect the cannabis industry today and advised businesses how to operate within them.”
Clients also acknowledged “the passion and commitment of Duane Morris’ lawyers to serve businesses and entrepreneurs.” The Legal 500 named partners Seth Goldberg and Michael Schwamm “Leading Lawyers” in the Cannabis Industry – as well as recognizing Tracy Gallegos, Paul Josephson and Justin Santarosa for their work.
“The firm has acted as a pathfinder through a constellation of state laws and regulation – many of which the firm’s cannabis practice has helped shape.”