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Attorneys general

Bipartisan Coalition Urges Federal Cannabis Banking Reform

Strategic Insights

— 2 min read

Michigan Attorney General Dana Nessel joined a coalition of bipartisan attorneys general in calling on Congress to pass the SAFER Banking Act of 2025, aiming to provide legal clarity for banks and financial institutions to serve state-regulated cannabis businesses. This move addresses critical public safety concerns, improves tax compliance, and enhances transparency for states. The coalition emphasizes that current federal banking restrictions create unnecessary risks, forcing legitimate cannabis businesses to operate primarily in cash. By passing the SAFER Banking Act, the coalition seeks to reduce crime, improve tax compliance, and promote economic growth in states where cannabis has been legalized.

Key Takeaways:

  • 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.
  • Nearly 75% of Americans now live in jurisdictions where cannabis has been legalized in some form.
  • The SAFER Banking Act would not encourage cannabis legalization in states that have chosen not to permit it, nor would it change cannabis's federal legal status.
  • Industry experts project that combined U.S. annual sales of regulated cannabis could reach $34 billion by the end of 2025.
  • 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 highlights the significant economic impact of state-regulated cannabis industries, with 21 states currently collecting cannabis tax revenues.
  • The SAFER Banking Act 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 legislation brings cannabis commerce into the regulated banking system, enabling law enforcement, federal, state, and local tax agencies, and cannabis regulators to more effectively monitor cannabis businesses and their transactions.
  • Democratic and Republican attorneys general have joined forces to support this bipartisan effort, making it a common-sense and practical solution to address the challenges faced by state-regulated cannabis industries.

Statistics:

  • U.S. legal cannabis retail sales reached $30.1 billion in 2024, a 4.5% increase year-over-year.
  • Industry experts project that combined U.S. annual sales of regulated cannabis could reach $34 billion by the end of 2025.
  • The cannabis industry supports approximately 425,000 jobs nationwide.
  • 75% of Americans now live in jurisdictions where cannabis has been legalized in some form.

Sources:

  • Michigan Attorney General Press Release (July 24, 2025) [www.michigan.gov/ag/news/press-releases/2025/07/24/attorney-general-nessel-joins-bipartisan-coalition-supporting-federal-cannabis-banking-reform]

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