Hemp businesses are having trouble accessing banks, and U.S. Sen. Michael Bennet of Colorado has written to five federal agencies  seeking help.

Bennet’s main request was for the agencies to issue guidance to financial institutions on serving the hemp industry following the 2018 Farm Bill, which excluded hemp from being a Schedule I drug.

“In my home state of Colorado, farmers cultivated hemp on over 21,000 acres of land last year,” Bennet wrote in letters to the five agencies. “Nonetheless, farmers and processors generally continue to lack access to the banking system.”

The Federal Reserve, the Federal Deposit Insurance Corporation, the Comptroller of Currency within the U.S. Department of the Treasury, the National Credit Union Administration and the Farm Credit Administration all have issued responses to Bennet.

The Federal Reserve and OCC said they have no plans to issue such guidance, as they expect banking institutions to cater to the hemp industry adequately with guidelines already in place, and that the decision power should be left with the banks.

“The decision to open, to close, or to decline a particular account is generally made by the financial institution without involvement of the federal regulator,” wrote Federal Reserve Chairman Jerome Powell.

The FCA similarly stated they would not issue future guidance, as past guidance was sufficient and individual banks should develop their own procedures.

NCUA Chairman Rodney Hood acknowledged the industry’s issues.

“I share your concern that hemp farmers and processors may lack access to the financial services system,” Hood wrote. “Full access to the system will better enable these farmers and processors to make investments in their businesses and create jobs.”

However, Hood concluded that the banks will likely continue to have uncertainty about hemp customers until the U.S. Department of Agriculture finalizes regulations for the regulatory program initiated during the passing of the 2018 Farm Bill.

“Once we are able to provide more clarity, credit unions will be able to make more informed decisions,” Hood wrote. “As with any such business decision, credit unions should consider their objectives, evaluate the risks, and determine their capacity to manage those risks.”

FDIC Chairman Jelena McWilliams explained that the banking agency has addressed the concerns during their committee meetings and banker outreach meetings, and is currently providing training for examiners as well as encouraging institutions to not categorically exclude customers.

“You have my assurance that we will continue to maintain a dialogue with the institutions we supervise to reinforce this policy regarding the provision of services to legal hemp businesses,” wrote McWilliams.

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