Dana Nessel has joined a bipartisan group of attorneys urging Congress to pass the SAFER Banking Act of 2025. The SAFER Banking Act, or (Secure and Fair Enforcement Regulation Banking Act) is a bipartisan piece of legislation aimed at addressing the banking challenges faced by legal cannabis businesses in the United States.
In short, the SAFER act will allow the cannabis industry to access the regulated banking system, something it currently cannot do which means as of now businesses must operate on a primarily cash-only basis.
“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,” Nessel said.
Key Objectives of the SAFER Banking Act:
- Allow Cannabis Businesses Access to Financial Services
It permits banks and credit unions to provide services—such as loans, checking accounts, and credit card processing—to state-legal cannabis businesses without fear of federal penalties. - Enhance Public Safety
By allowing cannabis businesses to operate with traditional banking, the act reduces the need for these businesses to rely on cash-only operations, which are highly vulnerable to theft and crime. - Regulatory Oversight and Compliance
The act establishes a regulatory framework to ensure banks serving cannabis businesses adhere to anti-money laundering and customer due diligence requirements. - Support for Ancillary Businesses
It protects companies that work with cannabis businesses (like landlords, accountants, and security firms) from being penalized by financial institutions. - Clarity for Financial Institutions
The law provides a safe harbor for banks and insurance companies to work with cannabis clients in states where cannabis is legal, easing regulatory uncertainty. - Broader Financial Reform Elements
Compared to earlier versions, the SAFER Act includes updates that address concerns from both Democrats and Republicans—such as improved oversight of bank regulators and better protection for depository institutions.