The American Bankers Association (ABA) urged congressional leaders to swiftly pass the Secure and Fair Enforcement (SAFE) Banking Act, saying it would provide marijuana businesses and their banks "important legal and regulatory clarity" and address "a significant challenge facing American businesses, our communities, and the banks that serve them."
Bipartisan lawmakers refiled the cannabis banking bill last month, the latest step in a long push that has seen the House pass similar legislation seven times and the Senate Banking Committee advance a version in 2023, though no bill has become law and the 2023 measure died with the 118th Congress.
ABA noted that although nearly every U.S. state has legalized marijuana in some form, legal uncertainty over the proceeds of state-licensed cannabis businesses forces many to operate largely in cash, outside the regulated banking system. Those proceeds also flow to non-cannabis businesses such as accountants, tradespeople, landlords and law firms, the group said.
"The SAFE Banking Act would remove barriers to banking these funds, materially reducing the amount of cash moving through state-licensed cannabis businesses and service providers," ABA wrote, adding that this would cut the risk of these businesses being targeted by criminals and improve public safety.
ABA pointed to recent shifts in the legal definition of hemp and the ongoing federal effort to reschedule medical marijuana as reasons Congress must act, warning that marijuana product volume and state-licensed cash flow "is likely to increase substantially, exacerbating potential public safety and illicit finance risks." Banks already must follow anti-money-laundering rules, conduct due diligence, monitor transactions and keep records, the group said, adding that bringing cannabis proceeds into the banking system would boost transparency and accountability.
The letter was addressed to House Speaker Mike Johnson (R-LA), Senate Majority Leader John Thune (R-SD), Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY), plus the chairs and ranking members of the Senate Banking and House Financial Services committees, urging "prompt consideration" and "timely passage."
Senate Banking Committee Chairman Tim Scott (R-SC), a past opponent of the reform, recently called the conflict between federal marijuana prohibition and state-level legalization a "quandary" for cannabis businesses and the banks that might serve them. He said the SAFE Banking Act would "allow for the banking question to be solved by making it legal to bank it."
