This bill would make it easier for banks and other financial institutions to provide services to state-legal marijuana businesses. It would prevent federal regulators from penalizing banks for working with marijuana companies, and would ensure that money from legal marijuana sales is not treated as illegal drug money.
Latest Action
Committee on Banking, Housing, and Urban Affairs. Hearings held.
AI Summary
Plain-English explanation of this bill
This bill would make it easier for banks and other financial institutions to provide services to state-legal marijuana businesses. It would prevent federal regulators from penalizing banks for working with marijuana companies, and would ensure that money from legal marijuana sales is not treated as illegal drug money.
Last updated: 12/29/2025
Official Summary
Congressional Research Service summary
<p><b>Secure And Fair Enforcement Regulation Banking Act or the SAFER Banking Act</b> </p> <p>This bill provides protections for federally regulated financial institutions that serve state-sanctioned marijuana businesses. Currently, many financial institutions do not provide services to state-sanctioned marijuana businesses due to the federal classification of marijuana as a Schedule I controlled substance. </p> <p>Under the bill, a federal banking regulator may not penalize a depository institution for providing banking services to a state-sanctioned marijuana business. For example, regulators may not terminate or limit the deposit or share insurance of a depository institution solely because the institution provides financial services to a state-sanctioned marijuana business.</p> <p>The bill also prohibits a federal banking regulator from requesting or requiring a depository institution to terminate a deposit account unless (1) there is a valid reason, such as the regulator has cause to believe that the depository institution is engaging in an unsafe or unsound practice; and (2) reputational risk is not the dispositive factor.</p> <p>Additionally, proceeds from a transaction involving activities of a state-sanctioned marijuana business are no longer considered proceeds from unlawful activity. (Financial institutions that handle proceeds from unlawful activity are subject to anti-money laundering laws. Violators of these laws are subject to fines and imprisonment.)</p> <p>Furthermore, a financial institution, insurer, or federal agency may not be held liable or subject to asset forfeiture under federal law for providing a loan, mortgage, or other financial service to a state-sanctioned marijuana business.</p>
Key Points
Main provisions of the bill
Allows federally regulated banks and financial institutions to provide services to state-sanctioned marijuana businesses without fear of federal penalties or loss of deposit insurance
Prohibits federal banking regulators from requiring banks to close accounts with marijuana businesses solely based on reputational risk
Ensures that money earned from legal marijuana sales is not considered 'proceeds from unlawful activity' under anti-money laundering laws
How This Impacts Americans
Potential effects on citizens and communities
If this bill becomes law, it would significantly reduce the legal and financial risks for banks that want to work with state-legal marijuana businesses. This would make it much easier for marijuana companies to access basic banking services like checking accounts, loans, and credit card processing. This could help the legal cannabis industry grow and become more mainstream.