Bipartisan Coalition Urges Congress to Pass SAFER Banking Act

A bipartisan coalition of attorneys general, including Michigan Attorney General Dana Nessel, has called on Congress to pass the SAFER Banking Act of 2025, a legislation that would provide legal clarity for banks and financial institutions to serve state-regulated cannabis businesses. The coalition argues that the current federal banking restrictions create unnecessary public safety risks and undermine states' ability to effectively regulate and tax these industries. By reducing the risk of crime and improving tax compliance, the SAFER Banking Act aims to enhance both public safety and transparency.

Key Takeaways:

• The SAFER Banking Act aims to provide legal clarity for banks and financial institutions to serve state-regulated cannabis businesses.
• The current federal banking restrictions create unnecessary public safety risks by forcing legitimate cannabis businesses to operate primarily in cash.
• 39 states, three territories, and the District of Columbia permit medical cannabis use, while 24 states, two territories, and the District of Columbia have legalized adult-use cannabis.
• U.S. legal cannabis retail sales reached $30.1 billion in 2024, a 4.5% increase year-over-year, supporting approximately 425,000 jobs nationwide.
• The coalition emphasizes that the legislation creates a targeted safe harbor allowing depository institutions to provide financial services to covered businesses in states that have implemented laws and regulations ensuring accountability in the cannabis industry.
• The SAFER Banking Act would enable law enforcement, federal, state, and local tax agencies, and cannabis regulators to more effectively monitor cannabis businesses and their transactions.
• Compliance with tax laws would be simpler and easier to enforce with regulated tracking of funds in the banking system, resulting in higher tax revenues.
• The coalition stresses that the legislation is common-sense, bipartisan, and respects both state sovereignty and the current federal status of cannabis.

Statistics:

• U.S. legal cannabis retail sales reached $30.1 billion in 2024, a 4.5% increase year-over-year, supporting approximately 425,000 jobs nationwide.
• Industry experts project that combined U.S. annual sales of regulated cannabis could reach $34 billion by the end of 2025.
• 21 states currently collect cannabis tax revenues, but many state agencies have been turned away by financial institutions when attempting to deposit cannabis-related payments.

Sources:

• Letter to congressional leaders from a bipartisan coalition of attorneys general, including Michigan Attorney General Dana Nessel [PDF]
• Statement from Michigan Attorney General Dana Nessel