A bipartisan coalition of 32 attorneys general from across the United States is urging Congress to act on long-stalled cannabis banking reform. In a letter sent on August 24, 2025, state and territorial legal officers from both red and blue states pressed lawmakers to advance the Secure and Fair Enforcement Regulation (SAFER) Banking Act, a measure designed to provide financial institutions with safe harbor protections when working with cannabis businesses.
With nearly half the country allowing adult-use cannabis and most states permitting medical marijuana, the lack of federal banking reform continues to leave the multibillion-dollar industry operating in risky cash-only environments.
Key Takeaways
- 32 attorneys general from 28 states, D.C., and three territories signed the letter.
- The group urged Congress to pass the SAFER Banking Act to protect financial institutions and cannabis businesses.
- The coalition highlighted public safety risks tied to cash-only operations.
- Without reform, banks remain hesitant due to federal anti-money laundering laws.
- Cannabis sales in the U.S. could reach $34 billion by the end of 2025.
A Bipartisan Call for Reform
The letter was spearheaded by Attorney General Brian Schwalb (D.C.), Christopher Carr (Georgia), Anthony Brown (Maryland), and Dave Yost (Ohio). It was sent to top congressional leaders, including Senate Majority Leader John Thune and House Speaker Mike Johnson, along with the chairs of the Senate Banking Committee and House Financial Services Committee.
The attorneys general stressed that they are united in protecting the economic well-being of their states while ensuring public safety. They emphasized that regulated cannabis businesses have already created more than 425,000 jobs nationwide and play a significant role in local economies.
Why the SAFER Banking Act Matters
Currently, most cannabis businesses are forced to rely on cash because federal law categorizes cannabis sales as criminal activity. This creates a dangerous situation:
“When the public is only allowed to conduct business in cash, employees and customers are at greater risk of violent crime,” the attorneys general wrote.
Banks are reluctant to work with cannabis businesses because of federal anti-money laundering laws. Even in states where cannabis is legal, federally insured banks risk penalties for servicing the industry.
By passing the SAFER Banking Act, Congress could provide a clear legal framework that allows banks to serve cannabis businesses without fear of federal reprisal.
The Political Roadblock
Although the SAFER Banking Act passed the Senate Banking Committee in 2023 with bipartisan support, it stalled before reaching a full Senate vote. Now, with Republicans in control of both chambers, the path forward is more complicated.
- Sen. Tim Scott (R-S.C.), chair of the Senate Banking Committee, remains opposed to the reform.
- Majority Leader John Thune (R-S.D.) has also voiced opposition.
- House Speaker Mike Johnson (R-La.) voted against prior versions of cannabis banking reform.
Still, the push from attorneys general adds significant pressure, especially given that President Donald Trump signaled support for cannabis banking reform during his 2024 campaign.
Public Safety and Tax Oversight
The attorneys general argue that passing the SAFER Banking Act would not only reduce risks of violent crime but also improve financial oversight and tax collection.
They wrote that bringing billions of dollars into the regulated banking system would:
- Simplify compliance with tax laws
- Increase state and federal tax revenues
- Allow regulators to better monitor cannabis transactions
- Improve law enforcement tracking of funds
Importantly, they noted the legislation would respect state sovereignty and would not serve as a backdoor to federal legalization.
Conclusion
The message from 32 attorneys general is clear: the lack of banking access for cannabis businesses is not just an industry issue, it’s a public safety and financial oversight problem. As cannabis continues its march toward mainstream acceptance, pressure is building on Congress to deliver a workable solution.
Whether the SAFER Banking Act gains traction in a divided Congress remains uncertain, but with billions in projected cannabis sales and growing bipartisan concern, the call for reform is louder than ever.
This article is based on publicly available legislative records, court filings, industry reports, and published research as of the publication date. Cannabis laws and regulations change frequently — verify current rules with your state’s regulatory agency.
