Highlights;
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A bipartisan group of attorneys general from 28 states, Washington, D.C., and three U.S. territories sent a letter to congressional leaders advocating for the passage of the SAFER Banking Act. This act aims to provide a safe harbor for financial institutions serving the cannabis industry.
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The letter, supported by attorneys general from both Democrat and Republican states, emphasizes bipartisan support for resolving the banking challenges faced by the cannabis industry in states where it is legal.
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Key reasons for supporting the legislation include public safety concerns, as cash-only transactions increase the risk of crime, and the need for improved tax collection and regulatory oversight.
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The cannabis industry significantly contributes to the economy, providing 425,000 jobs in 2024 and projecting $34 billion in sales by 2025. However, federal banking laws conflict with state legalization, deterring financial institutions from servicing these businesses.
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Previous legislative attempts, such as the SAFE Banking Act, have stalled despite significant support, facing opposition from key Republican leaders. However, President Trump has expressed support for cannabis banking reform.
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The attorneys general argue that enabling banking access for cannabis businesses would enhance public safety, facilitate tax collection, and ensure regulatory compliance, while respecting state sovereignty without encouraging legalization.
A bipartisan group of attorneys general from 28 states, Washington, D.C., and three U.S. territories has urged Congress to pass the Secure and Fair Enforcement (SAFER) Banking Act. This legislation aims to provide legal protection for financial institutions serving the cannabis industry, addressing the current federal-state legal conflict that makes banking risky for these businesses.
The attorneys general, representing both Democrat and Republican states, sent a letter to Senate and House leaders, emphasizing the importance of allowing regulated banking services for state-licensed cannabis businesses. They highlighted the necessity of this legislation for public safety, economic growth, and effective tax collection, while respecting state sovereignty without encouraging legalization.
Key points from their appeal include the growing cannabis industry’s economic impact, with over 425,000 jobs in 2024 and projected $34 billion in sales by 2025. They underscored the safety risks of cash-only transactions, which increase the likelihood of violent crimes against employees and customers. The letter also noted that regulated banking would facilitate better financial oversight and tax compliance.
Despite previous attempts, the SAFER Banking Act has stalled in Congress, with opposition particularly from Senate Banking Committee Chair Tim Scott and Majority Leader John Thune. However, President Donald Trump has expressed support for cannabis banking reform. The attorneys general stressed the urgency of resolving this issue to ensure public safety and economic stability.
Source: https://www.cannabisbusinesstimes.com/safe-banking-act/news/15754062/32-attorneys-general-tell-congress-to-pass-safer-banking-for-cannabis
