A bipartisan coalition of 32 state attorneys general has urged Congress to pass the Secure and Fair Enforcement Regulation (SAFER) Banking Act of 2025, aiming to provide legal clarity for financial institutions serving state-regulated cannabis businesses. This initiative seeks to address public safety concerns and enhance states’ abilities to collect taxes and conduct regulatory oversight.
Currently, federal banking restrictions compel many cannabis businesses to operate primarily in cash, creating significant public safety risks. The attorneys general emphasized that this cash-intensive environment makes employees and customers targets for violent crime and hampers effective state regulation and taxation of the industry. They noted that in 2024, legal cannabis retail sales in the U.S. reached $30.1 billion, a 4.5% increase from the previous year, supporting approximately 425,000 jobs nationwide. Industry experts project that combined U.S. annual sales of regulated cannabis could reach $34 billion by the end of 2025. ([michigan.gov](https://www.michigan.gov/ag/news/press-releases/2025/07/24/attorney-general-nessel-joins-bipartisan-coalition-supporting-federal-cannabis-banking-reform?utm_source=openai))
Michigan Attorney General Dana Nessel highlighted the potential benefits of the SAFER Banking Act, stating, “By reducing the risk of crime and improving tax compliance through access to regulated financial services, the SAFER Banking Act has the ability to enhance both public safety and transparency.” ([michigan.gov](https://www.michigan.gov/ag/news/press-releases/2025/07/24/attorney-general-nessel-joins-bipartisan-coalition-supporting-federal-cannabis-banking-reform?utm_source=openai))
The coalition also pointed out that 39 states, three territories, and the District of Columbia permit medical cannabis use, while 24 states, two territories, and the District of Columbia have legalized adult-use cannabis. Despite this widespread legalization, many state agencies have been turned away by financial institutions when attempting to deposit cannabis-related payments. ([michigan.gov](https://www.michigan.gov/ag/news/press-releases/2025/07/24/attorney-general-nessel-joins-bipartisan-coalition-supporting-federal-cannabis-banking-reform?utm_source=openai))
Colorado Attorney General Phil Weiser has been advocating for cannabis companies to access the commercial banking system for years, citing the safety risks many cannabis companies face simply to do business. ([marijuanamoment.net](https://www.marijuanamoment.net/bipartisan-coalition-of-32-attorneys-general-pushes-congress-to-urgently-pass-marijuana-banking-bill/?utm_source=openai))
The attorneys general argue that the SAFER Banking Act would not encourage cannabis legalization in states that have chosen not to permit it, nor would it change cannabis’s federal legal status. Instead, the legislation creates a targeted safe harbor allowing depository institutions to provide financial services to covered businesses in states that have implemented laws and regulations ensuring accountability in the cannabis industry. ([michigan.gov](https://www.michigan.gov/ag/news/press-releases/2025/07/24/attorney-general-nessel-joins-bipartisan-coalition-supporting-federal-cannabis-banking-reform?utm_source=openai))
By bringing cannabis commerce into the regulated banking system, the SAFER Banking Act aims to enable law enforcement, tax agencies, and cannabis regulators to more effectively monitor cannabis businesses and their transactions. Compliance with tax laws would be simpler and easier to enforce with regulated tracking of funds in the banking system, resulting in higher tax revenues. ([michigan.gov](https://www.michigan.gov/ag/news/press-releases/2025/07/24/attorney-general-nessel-joins-bipartisan-coalition-supporting-federal-cannabis-banking-reform?utm_source=openai))
The coalition concludes that the legislation will beneficially impact the safety of Americans who live in states where cannabis has been legalized, while enabling economic growth and stability in their respective jurisdictions. ([michigan.gov](https://www.michigan.gov/ag/news/press-releases/2025/07/24/attorney-general-nessel-joins-bipartisan-coalition-supporting-federal-cannabis-banking-reform?utm_source=openai))