Credit union breaks ties with medical marijuana caregivers amid lack of state regulation

OG article

June 18, 2025

Portland, Maine – cPort Credit Union Terminates Accounts for Medical Marijuana Caregiver Storefronts

In a significant development for Maine’s medical marijuana industry, cPort Credit Union has announced the closure of all accounts held by medical marijuana caregiver storefronts, effective July 31, 2025. Andrew Pettingill, owner of Evergreen Cannabis Company in Portland, received notification of the decision last week, expressing concern about the impact on his business and others in the sector. “They’re essentially telling us to revert to cash-only operations, storing money in shoeboxes,” Pettingill remarked, highlighting the practical challenges of operating without banking services.

The decision, outlined in an email obtained by WMTW’s 8 Investigates, was communicated by cPort’s President and CEO, Kelsey Marquis. The credit union cited evolving federal and state regulatory expectations as the basis for its action, stating, “We have carefully reassessed our risk exposure and concluded that this change is necessary to ensure ongoing compliance with federal and state expectations.” This move affects hundreds of small businesses, as cPort has been a critical financial partner for Maine’s medical marijuana sector.

Federal-State Regulatory Conflict

The root of the issue lies in the federal classification of marijuana as a Schedule I substance, which prohibits national banks from servicing cannabis-related businesses. Local credit unions, such as cPort, have historically filled this gap, providing essential banking services to both medical and recreational cannabis businesses. Pettingill noted that cPort was among the first financial institutions to support his business, having maintained an 11-year banking relationship. The abrupt termination of these accounts leaves many operators questioning

their next steps.

A key regulatory discrepancy exacerbates the challenge: while Maine’s adult-use cannabis businesses must comply with stringent reporting requirements to track product origins and sales, medical marijuana caregiver storefronts are exempt from these mandates. Federal regulators, focused on preventing money laundering, expect uniform compliance across all cannabis operations, placing credit unions in a precarious position. Jen Burke, Vice President of the Maine Credit Union League, which spoke on cPort’s behalf, described the situation as a struggle “against federal oversight,” noting that financial institutions are navigating a complex and ambiguous regulatory landscape.

Calls for State Intervention

Burke emphasized the need for enhanced state oversight to align Maine’s medical marijuana regulations with federal banking standards. “If we can implement regulatory changes, it would create a more feasible environment for financial institutions to serve medical caregivers,” she stated. Without such reforms, she warned, businesses may be forced to operate on a cash-only basis, posing significant safety and operational risks. “The safety and soundness of cash-only businesses is a concern for all Mainers,” Burke added.

The Maine Office of Cannabis Policy (OCP) has repeatedly proposed legislation to harmonize medical marijuana regulations with those governing adult-use cannabis, which could facilitate banking compliance. However, as OCP spokesperson Alexis Soucy noted in a statement, “The Maine Legislature has consistently rejected proposals that would align Maine’s regulations with federal policy.” In contrast, states like Michigan and Colorado have successfully implemented such measures, enabling greater banking access for their cannabis industries.

Additional Regulatory Gaps

Beyond reporting disparities, medical marijuana in Maine is not subject to the same product testing requirements as adult-use cannabis, further complicating compliance for financial institutions. These inconsistencies heighten the perceived risk for banks and credit unions, contributing to cPort’s decision to sever ties with caregiver storefronts.

Industry Implications

cPort’s account closures represent a setback for Maine’s medical marijuana sector, which has relied on local credit unions for financial stability since the state legalized medical cannabis in 1999. The decision underscores the broader challenges facing cannabis businesses nationwide, as federal prohibition continues to limit banking access. Legislative efforts, such as the federal SAFE Banking Act, have sought to address these issues but have yet to gain traction in Congress.

For affected businesses, the immediate priority is identifying alternative banking solutions, though options remain limited due to federal restrictions. In the absence of regulatory reform, operators may need to adopt secure cash management practices to mitigate risks associated with cash-only operations.

Conclusion

The termination of cPort Credit Union’s accounts for medical marijuana caregiver storefronts highlights the urgent need for regulatory alignment in Maine’s cannabis industry. As stakeholders, including business owners, financial institutions, and state officials, advocate for solutions, the outcome will have significant implications for the sustainability of Maine’s medical marijuana sector and the patients it serves. For further inquiries or updates on this issue, stakeholders may contact the Maine Office of Cannabis Policy or monitor legislative developments.