San Francisco-based community business bank TASI Bank has shared its perspective on the recent federal government's decision to begin the process to reclassify cannabis from Schedule I to Schedule III.
While in its early stages, the review is a meaningful directional shift — one that reinforces regulatory alignment without diluting the discipline required of financial institutions operating in highly regulated environments, according TASI's senior leadership.
"When the smoke clears, what matters most is not speed — it's structure," said Dave Joves, President of TASI Bank. "Rescheduling is a signal of progress, but it does not remove our responsibility to operate within clear regulatory and risk-management frameworks. Because we have always taken a regulator-first approach, this moment validates our long-held discipline rather than changing it."
"This is not about reversal or retreat — it's about normalization," Joves added. "Policy momentum is now moving in the same direction as regulatory reality."
From a banking perspective, signals matter — often as much as statutes themselves.
"In financial services, we don't wait for perfection to understand direction," said Alan Gaul, Vice President, Marketing & Brand at TASI Bank. "This move tells us where federal policy is heading, even if it doesn't answer every open question today. Rescheduling represents structural progress, not an endpoint."
One of the most immediate implications of rescheduling relates to IRS Code Section 280E, which currently prevents cannabis businesses from deducting ordinary business expenses. Reclassification to Schedule III weakens the rationale for applying 280E, potentially improving profitability, cash flow, and access to capital across the industry.
"More defined governance leads to healthier balance sheets, allows for better planning, and ultimately more bankable businesses," said Hitesh Bajaria, Regional Vice President, Business Development & Relationship Management. "This shift improves the underlying financial profile of operators who have already demonstrated compliance and operational maturity."
TASI Bank, which began serving segments of the cannabis industry a decade ago, continues to focus on California's state-regulated cannabis operators, maintaining a strong client presence across Northern and Southern California. The Bank prioritizes compliance, credibility, and sustainable growth over short-term momentum.
"Cannabis banking has never been about chasing headlines for us," Gaul added. "It has always been about credibility, consistency, and building something that holds up under scrutiny."
"Rescheduling reinforces our long-held belief we've that sustainable banking depends on alignment between regulation and reality — and that alignment is now moving in the right direction," Joves said.
For more information:
TASI Bank
Email: [email protected]
https://tasi.bank/
