The SAFE Banking Act: Why It Could Be a Breakthrough for Cannabis Entrepreneurs

SAFE Banking Act: Cleaning up the Cannabis Industry’s Banking Dilemma

When the SAFE Banking Act was first introduced back in March 2019, its supporters were careful to frame it in terms of public safety, rather than the full legalization of cannabis. The thinking was: if cannabis is legal state by state, let’s reduce the risks that come from forcing businesses to operate as all-cash entities—risks that affect small-business owners, employees, and public safety. The act’s core goal remains the same: to shield banks, credit unions, and insurers from federal penalties when serving legal cannabis businesses. It would give cannabis entrepreneurs access to essential financial services, including bank accounts, business loans, and merchant processing—critical infrastructure for any legitimate business.

The SAFE Banking Act’s primary sponsor, Representative Ed Perlmutter, Democrat of Colorado, has been pushing for cannabis banking reform for years. After passing the House multiple times, the bill repeatedly stalled in the Senate, with opposition tied to broader debates around federal legalization.

Where It Stands in 2025: New Hopes, Familiar Frustrations

As of early 2025, the SAFE Banking Act has been reintroduced—now called the SAFE Banking Act of 2024—with updated language addressing both banking protections and public safety improvements, such as reducing cash-based crime and increasing accountability through financial transparency.

Here’s what’s new:

• Enhanced protections for community banks and credit unions
• Expanded language for access to insurance and merchant services
• Additions supporting social equity licensees and underserved markets
• Bipartisan support remains strong, with over 100 cosponsors in Congress

However, as with previous versions, the bill has yet to move forward in the Senate. While it has passed the House seven times as of 2024, Senate gridlock remains a barrier, largely due to concerns about linking banking reform to broader cannabis legalization measures.

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The SAFE Banking Act: What You Can Do to Help

We’re serious. Even taking a minute to leave a voicemail in your senator’s inbox makes a difference. You’ll join the over 30 cannabis trade groups which are currently lobbying the Senate hard; every single call or letter reminds senators that a lot is riding on this bill.

How do you reach your senator? That’s easy: Start with this directory. Or if you prefer, you can send a letter or card. Remember: We’re all in this together. The cannabis industry needs a reliable financial bedrock upon which to grow. The SAFE Banking Act will help enable it, but it needs your help to pass.