The Blubber

Mastercard, $MA, has told US banks to block marijuana purchases on its US debit cards, per Daily Mail.

Despite the legalization of medicinal and recreational marijuana in several states, marijuana remains illegal at the federal level. Consequently, most banks in the country do not serve cannabis companies.

A Mastercard spokesperson addressed the matter, stating, "Upon learning of this issue, we promptly conducted an investigation. As per our policies, we directed the financial institutions that facilitate payment services for cannabis merchants and connect them to Mastercard to terminate such activity."

The spokesperson clarified that since the federal government deems cannabis sales illegal, these purchases are not permitted on Mastercard's systems.

Sunburn Cannabis CEO Brady Cobb expressed his concerns about the decision, emphasizing that it deals another blow to the state-legal cannabis industry and negatively impacts patients and consumers seeking access to these products.

Verano's (VRNO.CD) President, Darren Weiss, reaffirmed the company's commitment to advocate for cannabis reform in Washington. He plans to engage in further dialogues with elected officials and stakeholders to support the growth of a safe and legal cannabis market across the U.S.

Notably, Republican Senator John Cornyn recently referred to Majority Leader Chuck Schumer's aspirations to pass a marijuana banking bill as "wishful thinking."

The SAFE Banking Act represents crucial legislation that could enhance the cannabis industry's ability to access banking services.