A bill was introduced in Congress last week that seeks to ensure that state-legal cannabis businesses have access to banking and financial services.
The Secure and Fair Enforcement (SAFE) Banking Act of 2026 (H.R. 9471) would prevent federal banking regulators from restricting access to financial services to state-legal cannabis companies.
Specifically, this bill would prevent these regulators from:
- Prohibiting or discouraging a bank from providing financial services to a state-legal cannabis business.
- Terminating or limiting a bank’s federal deposit insurance primarily because the bank is providing services to a state-legal cannabis business.
- Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses.
- Taking any action on a loan to an owner or operator of a state-legal cannabis business.
Further, the legislation would require banks to comply with guidance from the Financial Crimes Enforcement Network (FinCen), as well as protect those who provide financial services to state-legal cannabis businesses from criminal prosecution or asset forfeiture. This extends to Community Development Financial Institutions (CDFI) and Minority Depository Institutions (MDI) to ensure they can also serve cannabis businesses.
“State-licensed cannabis businesses employ thousands of Americans and generate significant tax revenue, yet many remain effectively shut out of the traditional banking system. Forcing businesses to operate in cash not only hinders economic growth, but it also opens the doors for illegal activity like money laundering and organized crime,” U.S. Rep. Dave Joyce (R-OH), co-chair of the Congressional Cannabis Caucus and one of the bill’s sponsors, said. “This legislation would provide access to capital and the necessary financial services to operate a successful business and keep communities safe.”
The bill was co-sponsored by Reps. Jim Himes (D-CT), Warren Davidson (R-OH), Nydia Velázquez (D-NY), Brian Mast (R-FL), Lou Correa (D-CA), Guy Reschenthaler (R-PA), and Dina Titus (D-NV).
“It’s long overdue that the federal government eliminate its unfair prohibition on state-legal cannabis businesses utilizing basic banking services,” Himes said. “Forcing legal businesses and their customers to operate exclusively in cash is nonsensical and dangerous, exposing both to unnecessary danger and hindering commerce in a growing industry. This bill would provide certainty for the legal cannabis industry and allow it to serve its customers without fear of federal punishment for conducting legitimate business.”
Most state-legal cannabis businesses, both medicinal and recreational, are denied access to banking and financial services, s\aid the lawmakers. Banks fear they may be prosecuted under federal law due to federal restrictions on cannabis. So, these businesses are often forced to operate in cash, leaving them susceptible to criminal activities like money laundering, tax evasion, and armed robbery.
“Businesses operating legally under state law should not be forced into a cash-only system or denied basic financial services,” Davidson said. “The SAFE Banking Act reduces the risks created by cash-only operations and gives financial institutions clear rules while protecting them from politically motivated regulatory retaliation. Banks should be free to serve lawful customers without interference from Washington.”
The SAFE Banking Act has passed the House seven times with bipartisan support but has repeatedly been derailed in the Senate.
“For too long, legal cannabis businesses have been shut out of the traditional banking system, forced into risky alternatives and made targets for crime. These small businesses are creating jobs and stimulating local economies. They deserve the same access to banking that every other lawful business already enjoys. I am proud to join my colleagues in introducing the SAFE Banking Act, a commonsense, bipartisan bill that will help create jobs throughout the country and grow our economy,” Velázquez said.