Has the SAFE Banking Act passed?
Amid these challenges, the Secure and Fair Enforcement (SAFE) Banking Act continues to generate attention and bipartisan support but remains stalled, primarily due to a packed Congressional schedule. Intended to give banks and credit unions safe harbor when serving state-legal MRBs, the Act has passed the U.S. House seven times but has never cleared the Senate.
With its most recent iteration, the SAFER Banking Act (S.2860) remains pending in the Senate. In July 2025, a majority of state attorneys general sent a letter to Congressional leaders in support of passing federal protections for banks that do business with marijuana companies. “We write today in support of the SAFER Banking Act of 2025,” the letter read. “It is increasingly critical to move cannabis commerce into the regulated banking system.”
What the Act would mean for financial institutions
The SAFE Banking Act does not legalize marijuana or remove it from Schedule I. However, it would change the operational risk landscape by protecting financial institutions that serve compliant MRBs from federal penalties, asset forfeiture, or loss of deposit insurance.
The Act would also support AML/CFT efforts by reducing cash-only business models and enabling better transaction monitoring. Senator Jeff Merkley (D-Oregon) described the issue clearly in his Senate Committee testimony: “There is nothing like a cash economy to facilitate money laundering.”
Cash-heavy operations are more vulnerable to violent crime and harder for law enforcement to monitor. Without auditable financial records, marijuana-related activity remains in the shadows. Allowing electronic transactions would enable institutions to detect suspicious patterns better, file more accurate SARs, and bring marijuana-related funds into the oversight of the financial system.
Marijuana safe banking today
Despite legalization in most states, the vast majority of MRBs still lack access to traditional financial services. FinCEN SAR data shows that only about 830 U.S. banks and credit unions currently serve this market.
This forces many MRBs to operate in cash, limiting their ability to secure loans, build credit, or expand. For financial institutions, even those not intentionally serving the marijuana industry, this gap increases the risk of unknowingly onboarding or servicing indirectly connected customers.
Supporters of the SAFE Banking Act emphasize that the issue isn’t just about access but also about public safety. The Act would not only help institutions manage risk but also enhance community safety by integrating more marijuana funds into transparent, monitored systems. It would also protect the ecosystem of businesses that support MRBs, like landlords, law firms, and payroll providers.
