The American Bankers Association (ABA) is urging Congress to pass the SAFE Banking Act of 2026, arguing that the bipartisan proposal is needed to give banks legal clarity to serve state-licensed cannabis businesses and related service providers.
In a July 1 letter sent to House and Senate leaders, ABA Chief Policy Officer Naomi Camper expressed the organization’s strong support for H.R. 9471/S. 4942. The bill is led by U.S. Senator Jeff Merkley (D-OR) and U.S. Representative Dave Joyce (R-OH).
Banking association demands reform for cannabis industry
According to the ABA, the SAFE Banking Act would improve public safety, help combat illicit finance, and provide critical certainty amid the evolving legal landscape. Many state-licensed cannabis businesses currently operate almost entirely in cash because they lack access to traditional banking systems.
The issue also affects non-cannabis businesses that work with the industry, including accountants, tradespeople, landlords and law firms.
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What the SAFE Banking Act would do
According to Rep. Joyce’s office, the proposal would prevent federal banking regulators from prohibiting or discouraging banks from serving state-legal cannabis businesses, limiting or terminating deposit insurance because a bank serves the industry, pressuring banks to end or downgrade services, or taking action on loans tied to a state-legal cannabis business.
Federal changes add urgency
The ABA points to several recent federal changes that make congressional action more urgent. In April, medical marijuana was rescheduled from Schedule I to Schedule III under the Controlled Substances Act, and a new federal process has begun to reevaluate the scheduling of non-medical marijuana.
Beginning in November, many CBD and other hemp-derived products currently sold across the country are set to become regulated as marijuana under the CSA. This means the volume of marijuana-related products and state-licensed proceeds is likely to increase substantially, exacerbating public safety and illicit finance risks.
Allowing cannabis- and hemp-related funds to enter the regulated banking system would place more transactions under anti-money laundering rules, customer due diligence requirements, suspicious activity monitoring and recordkeeping obligations.
Seven House passes, no law yet
The SAFE Banking Act has passed the House of Representatives seven times in various forms but has never been signed into law. The ABA now urges members to cosponsor and requests prompt consideration in both the Senate Banking Committee and House Financial Services Committee.
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