The American Bankers Association is urging congressional leaders to pass the SAFE Banking Act of 2026, arguing that the bipartisan proposal is needed to give banks legal clarity to serve state-licensed marijuana 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 Secure and Fair Enforcement Banking Act of 2026. The bill is led by U.S. Senator Jeff Merkley (D-OR) and U.S. Rep. Dave Joyce (R-OH).
The legislation would provide federal protections for financial institutions that work with marijuana businesses operating legally under state law. Supporters say the bill would help reduce the cash-heavy nature of the legal marijuana industry, while improving transparency and public safety.
“The SAFE Banking Act would improve public safety, help the government combat illicit finance, and provide a critical measure of certainty in response to the evolving legal landscape by granting cannabis businesses operating in full compliance with state laws access to essential financial services,” the ABA said in the letter.
The group noted that while nearly every state has legalized marijuana in some form, ongoing federal uncertainty means many state-licensed businesses continue to operate largely in cash and outside the traditional banking system. The ABA said the issue also affects non-marijuana businesses and service providers that work with the industry, including accountants, skilled trades, landlords and law firms.
The SAFE Banking Act was reintroduced June 25 in the House by Joyce and a bipartisan group of lawmakers, including Reps. Jim Himes (D-CT), Warren Davidson (R-OH), Nydia Velázquez (D-NY), Brian Mast (R-FL), Lou Correa (D-CA), Guy Reschenthaler (R-PA) and Dina Titus (D-NV). Merkley also reintroduced the measure in the Senate.
According to Joyce’s office, the proposal would prevent federal banking regulators from prohibiting or discouraging banks from serving state-legal marijuana 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 marijuana business.
In its letter, the ABA said recent federal changes have made congressional action more urgent. The group pointed to the April rescheduling of medical marijuana from Schedule I to Schedule III under the Controlled Substances Act, as well as a new federal process to reevaluate the scheduling of non-medical marijuana. The ABA also noted that beginning in November, many CBD and other hemp-derived products currently sold by businesses across the country are set to become regulated as marijuana under the CSA.
“As a result, the volume of marijuana-related products and state-licensed proceeds is likely to increase substantially, exacerbating potential public safety and illicit finance risks,” the ABA said.
The group said allowing marijuana- and hemp-related funds to enter or remain in the regulated banking system would improve accountability by placing more transactions under anti-money laundering rules, customer due diligence requirements, suspicious activity monitoring and recordkeeping obligations.
The ABA urged members of Congress to cosponsor the SAFE Banking Act and requested prompt consideration in both the Senate Banking Committee and House Financial Services Committee.
The SAFE Banking Act has passed the House seven times in previous forms, but has never been signed into law.
