Thirty-two attorneys general representing states, territories and Washington, D.C. are asking Congress to pass legislation to provide financial institutions a safe harbor if they provide services to marijuana-related businesses in states where cannabis is legal.
“Numerous state cannabis regulatory agencies have reported they have been turned away by the financial institutions that regularly service those agencies for other needs when the agencies have sought to bank cannabis licensees’ tax and other payments,” the AGs wrote in a letter to Congressional leaders and chairmen and ranking members of House and Senate committees dealing with banking issues.
They continued, “States continue to consider and implement legalization efforts, the lack of access to America’s financial system by cannabis businesses – which is a direct result of federal banking law – presents a considerable safety issue for the public,” the state AGs. wrote.
They added, “We are a bipartisan group of state and territorial attorneys general who, like you, have a strong interest in protecting the physical and economic wellbeing of our constituents while enabling economic growth and stability in our respective states.”
Known as the Secure and Fair Enforcement Regulation Banking Act (SAFER), the House has passed the legislation several times; it never has passed the Senate.
Banks must follow federal and state laws. Since marijuana is illegal on the federal level, financial institutions are subject to regulatory sanctions if they serve marijuana-related businesses. In addition, banks must file Suspicious Activity Reports when they serve cannabis-related businesses even in states where cannabis is legal.
Legal cannabis businesses cannot gain access to commercial loans, payroll services, credit lines and merchant processing, according to the AGs. Much of their business must be conducted in cash—raising public safety concerns, they added.
The AGs said that numerous state cannabis regulatory agencies have said they have been turned away by financial institutions when they have sought to deposit cannabis licensees’ tax and other payments.
They said the SAFER Banking Act would ensure that state governments do not forfeit hundred of millions of dollars in tax revenue that the cannabis industry generates.
The attorneys generals pointed out that 39 states, three territories and the District of Columbia permit medical use of cannabis products.
They said that 24 states, two territories and the District of Columbia have enacted measures to regulate cannabis for adult use, according to the AGs. In 2024, legal cannabis retail sales reached $30.1 billion, a 4.5% increase year-over-year, they said. And they noted, that nationwide regulated marijuana businesses provided about 425,000 jobs.
The SAFER Banking Act does not encourage legalization and does not facilitate cannabis sales in states that have not legalized it, the AGs said.
Attorneys Generals signing the letter are: Brian Schwalb, Washington , D.C.; Christopher M. Carr, Ga.; Anthony M. Brown, Md.; Dave Yost, Ohio; Treg Taylor, Alaska; Gwen Tauliiili-Langkide, American Samoa; Kris Mayes, Az.; Rob Bonta, Ca.; Phil Weiser, Colo.; William Tong, Conn.; Kathleen Jennings, Del.; Anne E. Lopez, Hi; Kwami Raoul, Ill.; Aaron Frey, Maine; Andrea Joy Campbell, Mass.; Dana Nessel, Mich.; Keith Ellison, Minn.; Aaron D. Ford, Nev.; Matthew J. Platkin; Raul Torrez, N.M.; Letitia James, N.Y.; Edward Manibusan, Northern Mariana; Genter Drummond, Ok.; Dan Rayfield. Ore.; Dave Sunday., Pa.; Peter F. Neronha, R.I.; Marty Jackley, S. D.; Gordon C. Rhea, U.S. Virgin Islands; Derek Brown, Utah; Charity Clark, Vt.; Nick Brown, Wash.; John JB McCuskey, WV.
Banking trade groups also have called for enactment of marijuana banking legislation. For instance, in a policy statement, the American Bankers Association called on Congress to “Pass the SAFER Banking Act to get state-sanctioned cannabis cash off the street and into regulated financial institutions, making our communities safer and the cannabis industry more transparent to regulators, tax authorities and law enforcement.”
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