Bank Of America Shuts Down Account Of Cannabis & Psychedelics Research Institute Registered With DEA

Bank of America is shutting down the account of the famed Scottsdale Research Institute (SRI), which happens to be federally authorized to cultivate and study Schedule I substances like cannabis and psilocybin mushrooms.

According to a letter from the BoA, which the SRI shared with Marijuana Moment on Monday, the second-largest bank in the country decided to close the Institute's account after "a careful review of your banking relationship."

The bank also informed SRI that the action was "final and won't be reconsidered." 

After receiving preliminary approval from the Drug Enforcement Administration (DEA) earlier this year, SRI became one of the first federally authorized cultivators of cannabis for research.

In May, the DEA announced it would begin approving applications that will allow some cannabis growers to become federally authorized to manufacture the plant for research purposes.

Since then, the institute has been conducting controlled trials evaluating cannabis as medicine for treating pain and PTSD in military veterans and terminally ill patients.

In response to the BoA's decision, SRI's chief investigator Dr. Sue Sisley shared the news on social media.

"We just wanted to expose the wrongdoing of these big banks," Sisley told Marijuana Moment, highlighting that "even federally legal operations are being unfairly targeted by these large banks who refuse to look at our federal regulatory documents."

While the institute did not receive any warning, Sisley said she thought BoA's move might be related to SRI being cleared to cultivate psilocybin for research. Nevertheless, the bank provided "zero justification."

Though it seems other financial institutions are willing to jump on the opportunity and support the institute's important research.

"Fortunately, there are banks that care about the progress of federally regulated and federally legal research and are eager to step up and support us immediately," Sisley said. "We will be moving our funding from Bank of America and never returning there."

Cannabis Banking Reform To End Up On President Biden's Desk? 

Meanwhile, as large financial institutions are trying to avoid serving cannabis businesses, the U.S. House of Representatives recently passed cannabis banking legislation yet again, just days after approving cannabis banking reform which was part of the legislation.

This time, the legislation was as part of a large-scale defense spending bill, leaving the possibility that cannabis banking could end up on President Biden's desk, thus moving cannabis-related businesses a step closer to accessing the U.S. banking system and much-needed capital.

Photo: Courtesy of Kai Pilger on Unsplash