In a joint letter posted on Thursday, a bipartisan group of 32 attorneys general from state and territory governments called for Congress to pass SAFER Banking Act of 2025. This legislation aims to normalize relationships between the state-legal cannabis industry and the financial sector.
According to a letter, the cannabis industry is expected to reach $34 billion sales by 2025. However, although nearly 75% of U.S. citizens live in a jurisdiction that has legalized some form of access to cannabis products – whether via a medical program or as part of sweeping adult-use reforms – the industry still conducts its business almost entirely in cash.
The attorneys general stated that this creates a “considerable safety issue” for the public, since “employees or customers may be at greater risk in the pursuit of the cash.” This letter states that allowing cannabis companies to access “the nation’s regulated bank system” is vital to public safety, and that it’s important to ensure that legal businesses in each state have access to regulated financial services.
In the letter it was stated that reforms were needed to improve compliance with the tax laws and that they would help ensure state governments did not lose hundreds of millions in revenue from the cannabis sector.
Congress should establish a safe haven for financial institutions providing a product or service in an industry that is regulated and has laws in place to ensure that the business can be held accountable. Safe harbors would allow law enforcement to better monitor the cannabis industry and its transactions. – Excerpt from the letter
The SAFER Banking Act, which was supported by Michigan Attorney-General Dana Nessel in 2023 and reduced the risks of criminal activity and improved tax compliance, can enhance transparency and public safety, she said. “With billions in revenue, giving cannabis businesses a secure place to bank isn’t just smart policy – it’s common sense.”