CANNABIS Banking and financial services iN

Cannabis Legalization and Regulation in Nevada

‍

Nevada legalized adult-use cannabis in 2016 through Ballot Question 2, with retail sales beginning in July 2017. Adults 21 and older may legally possess up to 1 ounce of cannabis flower or 3.5 grams of concentrates. Home cultivation is permitted for up to six plants per person (12 per household) if the individual lives more than 25 miles from a licensed dispensary. Public consumption is prohibited, though licensed cannabis consumption lounges are now authorized and beginning to open. Driving under the influence remains illegal.

‍

The Cannabis Compliance Board (CCB) regulates adult-use and medical cannabis in Nevada. The CCB oversees licensing for cultivation, production, distribution, testing, retail dispensaries, and consumption lounges. Nevada emphasizes strict compliance and testing standards to ensure product safety, with full track-and-trace requirements for all cannabis products.

‍

Nevada’s medical cannabis program, established in 2000, continues to operate alongside adult-use. Registered patients may purchase larger quantities, benefit from lower taxes, and cultivate plants at home under broader allowances than adult-use consumers.

‍

Hemp cultivation and hemp-derived CBD products are legal under state and federal law if they contain no more than 0.3% THC. Intoxicating hemp cannabinoids such as delta-8 THC are restricted and must be sold through the regulated cannabis supply chain. All hemp and cannabis products must comply with labeling, testing, and packaging rules.

‍

For cannabis operators, Nevada is a mature but growing market, particularly with the addition of on-site consumption lounges. Banks and financial service providers require full compliance documentation, including licenses, tax IDs, ownership disclosures, operating agreements, and financial statements. Because the industry remains cash-heavy, businesses must implement secure armored transport, reconciled deposits, AML/BSA monitoring, and audit-ready financial systems. Accurate excise and sales tax reporting—especially with Nevada’s cannabis excise tax—is essential for financial stability and reliable banking relationships.

‍

The Nevada Cannabis Compliance Board regulates the state’s cannabis industry. For official program details, licensing resources, and compliance updates, visit: https://ccb.nv.gov