Archive · 2025-07-15

If you’re new to the cannabis industry, you may not be fully aware of the SAFE Act, which is the shortened name for the Secure and Fair Enforcement Banking Act. This piece of legislation is designed to bridge the gap between state-legalized cannabis industries and the federal banking system due to the Schedule I classification of marijuana. It does so by establishing explicit federal protection for banks and insurers who serve legal cannabis businesses. First introduced in 2013, this cannabis banking bill has seen many changes as it has passed through the hands of multiple administrations.

Cannabis Banking Challenges

If you are not new to the industry, you’re likely quite keenly aware of the banking challenges that cannabis companies experience. State-chartered financial institutions in legal markets have high fees and extensive vetting, and digital providers generate concerns about compliance and security. As revisions and discussions continue regarding this potential regulation bundle, it is imperative to keep up with what is being added and removed. Let’s break it down. (Note that this bill does NOT federally legalize cannabis!)

SAFER Banking Act

In 2025, the SAFE Banking Act evolved into the SAFER Banking Act (Secure And Fair Enforcement Regulation Banking Act) with broader support and added provisions. As of July 2025, it has passed the Senate Banking Committee with a bipartisan 14-9 vote and now awaits a Senate floor vote. The SAFER Banking Act includes:
  • Enabled Legal Banking for Cannabis Related Businesses (CRB): federal protections for banks, which allows the servicing of cannabis businesses and ancillary service providers operating legally under state laws without fear of federal prosecution or regulatory penalties.
  • Expanded Access to Credit: legal cannabis businesses would gain access to commercial loans, payroll services, credit lines and mainstream merchant processing.
  • Secured Deposit Insurance: federal regulators are prohibited from terminating or limiting deposit insurance solely due to a financial institution’s cannabis-related clientele.
  • Lowered Risk Profile: banks, credit unions and financial technology could provide basic depository services (checking and payroll), offer merchant accounts for POS and online payments, structure cannabis business loans with better underwriting transparency, and facilitate real estate financing.
  • Improved Tax Compliance: easier and secured payments could be made for excise, payroll and local cannabis taxes.
According to Washington insiders, Congress will return to long-awaited key marijuana industry priorities like banking protections in the fall. “In my mind, we have a really, really good opportunity to get SAFE Banking done during this Congress,” David Culver, the senior vice president of the U.S. Cannabis Roundtable, a major Washington lobby group. “It’s the best opportunity we’ve ever had.” Industry lobbyists considered marijuana banking protections the top priority on Capitol Hill before the Biden Administration decided in October 2022 to reschedule marijuana under the Controlled Substances Act (CSA). But with the rescheduling process in an indeterminate state, there’s renewed focus on banking for the cannabis industry. SAFER Banking “opens the door up to future discussion of other financial services the industry is in desperate need of, as well as other reform efforts too,” Culver said. Although marijuana banking continues to be in limbo on the federal level due to the most recent form of the safe banking act, some state-level and private sector trends have emerged. States such as New York, New Jersey and Minnesota have launched partnerships with local credit unions or community banks to improve access for cannabis businesses.

Cannabis FinTech

Further, cannabis-focused financial technology (fintech) platforms have begun to offer cashless systems, tax prep integration and digital wallets with audit-ready reporting. For those looking to prepare for cannabis banking before it becomes law, here are some stages to consider:
  • Step 1: Separate ownership from management structures for clearer reporting.
  • Step 2: Build transparent financials and clean audit trails.
  • Step 3: Leverage automated cash tracking and bank integration tools.
  • Step 4: Establish scalable operational frameworks.
  • Step 5: Continue compliance with both local and state cannabis regulations.

Build Cannabis Banking Relationships at CannaCon

Do you have experience with navigating banking for cannabis companies? What are your thoughts on the cannabis banking bill pending for 12 years? Talk to business-minded members of the industry at CannaCon, the nation’s leading business-to-business cannabis conference. We’re on a mission to grow the cannabis industry by educating cannabis business owners on all things related to cannabis, hemp and psychedelics. CannaCon cannabis trade shows feature a large exhibition hall with exhibitors from around the globe, as well as expert seminars on topics such as cannabis banking. Follow us on social media and register to attend CannaCon in a city near you!