A bipartisan coalition of over 30 state and territorial attorneys general has sent a powerful message to congressional leaders, urging them to pass the SAFER Banking Act of 2025.

This shows the growing pressure from state officials to address the critical public safety and economic issues stemming from the cannabis industry’s lack of access to traditional banking services. The letter highlights a simple but urgent reality: forcing legal businesses to operate in cash is dangerous, inefficient, and unsustainable.

The cannabis industry, despite being legal in a majority of states, remains trapped in a financial gray area. Because cannabis is still currently classified as a Schedule I substance at the federal level, most banks and financial institutions are unwilling to work with cannabis-related businesses.

The fear of federal penalties forces a multi-billion dollar industry to operate almost entirely in cash, creating significant risks for employees, customers, and the public.

This cash-only model is not just a logistical nightmare; it’s a direct threat to public safety, inviting crime like robberies. It also complicates everything from payroll to paying taxes, hindering the growth and stability of legitimate businesses.

The letter from the attorneys general is a clear acknowledgment that this situation is untenable and requires immediate federal action to align banking laws with state-level legalization.

Bipartisan Push for Financial Reform For Cannabis Industry

A group of 32 state and territorial attorneys general, representing both Republican and Democratic leadership, sent a joint letter to key figures in the House and Senate. The recipients included the Speaker of the House, the Senate Majority Leader, and the ranking members of the banking committees in both chambers.

The letter makes a case for the SAFER (Secure and Fair Enforcement Regulation) Banking Act, framing it as a common-sense solution to a pressing national issue. “We are a bipartisan group of state and territorial attorneys general who, like you, have a strong interest in protecting the physical and economic wellbeing of our constituents,” the letter begins.

The core argument is that denying banking access to state-legal cannabis businesses creates severe public safety risks. “When the public is only allowed to conduct business in cash, employees and customers are at greater risk of violent crime,” the AGs wrote.

By bringing these businesses into the regulated banking system, the Act would not only reduce crime but also increase financial transparency, making it easier for states to collect taxes and oversee the industry effectively.

Why Cannabis Banking is a Public Safety Issue

The current federal prohibition on cannabis banking forces dispensaries, cultivators, and other related businesses into a cash-intensive reality. This makes them prime targets for criminals. Dispensaries often handle hundreds of thousands of dollars in cash, which must be transported and stored securely—a risky and expensive endeavor.

Employees face the constant threat of armed robbery, and the large amounts of cash on-site endanger entire communities.

The SAFER Banking Act would provide a “safe harbor” for financial institutions, protecting them from federal prosecution for servicing state-licensed cannabis businesses. This simple change would allow these companies to:

• Accept credit and debit cards, reducing the amount of cash on premises.
  
  
• Secure business loans to expand operations and create jobs.
  
  
• Use standard payroll services to pay employees.
  
  
• Pay taxes electronically, improving transparency and state revenue collection.

As the attorneys general noted, this isn’t just about protecting businesses; rather, it’s about protecting people. Moving transactions into the banking system is a crucial step toward normalizing the industry and ensuring the safety of everyone involved.

The Economic Impact of Denying Banking Services

The economic consequences of the current banking restrictions are significant. The legal cannabis industry is a major economic driver in the United States. In 2024, legal sales reached $30.1 billion and the industry supported approximately 425,000 jobs. Experts project that annual sales could hit $34 billion by the end of 2025.

However, without access to banking, the industry’s growth is stifled. Businesses struggle to secure capital for expansion, manage their finances efficiently, and operate with the same tools as any other legal enterprise. This not only limits job creation but also complicates tax collection.

The letter from the attorneys general highlights this challenge, stating, “The SAFER Banking Act would help ensure that state governments do not forfeit hundreds of millions of dollars in tax revenue that the cannabis industry generates.”

Many state regulatory agencies have reported being turned away by banks when trying to deposit tax payments from cannabis licensees.

By allowing cannabis funds into the banking system, states can therefore track revenue more effectively, ensure compliance, and collect taxes more efficiently.

What the SAFER Banking Act Does (and Doesn’t) Do

It’s important to understand what the SAFER Banking Act aims to achieve. The legislation is narrowly focused on resolving the banking issue and does not legalize cannabis at the federal level.

The key provisions of the bill would:

• Create a safe harbor for banks, credit unions, and other financial institutions that serve state-legal cannabis businesses.
  
  
• Prevent federal regulators from penalizing institutions solely for providing financial services to the cannabis industry.
  
  
• Allow businesses to access essential services like checking accounts, credit card processing, and loans.

The attorneys general were clear in their letter that the bill “respects both state sovereignty and the current status of cannabis at the federal level.” It does not force any state to legalize cannabis, nor does it interfere with states that have chosen to maintain prohibition.

It simply provides a financial framework that aligns with the reality that, for example, 39 states have legalized medical cannabis and 24 have legalized adult use.

The Safer Banking Ace Is A Path Forward for the Cannabis Industry

The united front presented by over 30 attorneys general sends an undeniable signal to Congress that the time for cannabis banking reform is now. Indeed, this is no longer a fringe issue; instead, it is a matter of public safety, economic stability, and states’ rights. Furthermore, the SAFER Banking Act has passed the House of Representatives multiple times with bipartisan support; however, it has consistently stalled in the Senate.

Now, with this renewed push from top state law enforcement officials, there is growing optimism that the legislation may finally advance. After all, the arguments are clear and compelling: a regulated, transparent banking system is safer and more effective for everyone. Ultimately, passing the SAFER Banking Act would be a critical step toward creating a more stable and secure environment for one of the nation’s fastest-growing industries.