Legal Cannabis Businesses May Soon Gain Access to Banking Under Proposed Federal Law

According to a joint letter released by Maryland Attorney General Anthony G. Brown and a bipartisan coalition of attorneys general, new legislation before Congress could significantly impact how cannabis-related businesses handle their finances and how states manage oversight and taxation. The coalition is urging lawmakers to pass the SAFER Banking Act of 2025, which would give financial institutions legal protection when working with state-regulated cannabis businesses—aiming to increase public safety and improve state tax enforcement.

Currently, federal banking restrictions force many cannabis operators to rely on cash-only transactions, raising concerns over theft and violence targeting employees and customers. These safety risks are compounded by difficulties faced by state agencies attempting to deposit cannabis-related tax revenues, often being denied services by banks due to federal legal uncertainties. The proposed legislation would create a safe harbor for banks operating in states where cannabis is legal and regulated, without altering the federal legal status of the drug or encouraging legalization in states that prohibit it.

By bringing cannabis-related transactions into the formal banking system, the SAFER Banking Act would allow for better tracking and transparency, improving the ability of tax authorities and regulators to monitor financial compliance. With legal cannabis retail sales reaching $30.1 billion in 2024 and projected to hit $34 billion by the end of 2025, the coalition emphasized the critical role financial access plays in securing both economic and public safety outcomes. Currently, 39 states and several U.S. territories have legalized cannabis in some form, and nearly three-quarters of Americans live in areas where cannabis use is permitted.

The letter, co-signed by attorneys general from 38 states, the District of Columbia, and U.S. territories, asserts that the SAFER Banking Act offers a bipartisan solution that respects state-level legalization while resolving federal banking conflicts. The measure is framed as a practical step to remove cash from cannabis storefronts and ensure that these businesses operate under the same financial regulations as other legal industries.

Article by multiple contributors, based upon information from the Office of the Maryland Attorney General press release

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