Marijuana Banking Legislation Gains Renewed Push from State AGs

In a recent article, Damon Barry of Ballard Spahr LLP reports that thirty-two attorneys general (AGs) from across the US, its territories, and Washington, DC have called on Congress to pass marijuana banking reforms with the Secure and Fair Enforcement Regulation Banking Act (SAFER). The legislation, which has cleared the House multiple times but never the Senate, would provide financial institutions a safe harbor when serving cannabis-related businesses in states where marijuana is legal.

According to the article, 39 states, three territories, and DC permit medical cannabis use, while 24 states, two territories, and DC regulate adult-use sales. In 2024, cannabis retail sales reached $30.1 billion, supporting approximately 425,000 jobs nationwide. 

The AGs warned that financial institutions frequently turn away both cannabis businesses and even state regulatory agencies attempting to deposit cannabis-related tax revenues. Because marijuana remains illegal under federal law, banks that serve the industry face the risk of regulatory sanctions and must file Suspicious Activity Reports, creating significant compliance burdens. This lack of access to the financial system forces legal cannabis operators to rely heavily on cash transactions, which the AGs argue creates serious public safety concerns.

Barry notes the AGs emphasized that the SAFER Act would not promote cannabis legalization in states that have not authorized it. Instead, they argued that marijuana banking reforms would protect public and economic safety by reducing cash exposure, expanding oversight, and ensuring governments do not forfeit substantial tax revenue.