SAFER Banking Act reintroduced with bipartisan support as cannabis companies face another year without basic financial services

The SAFER Banking Act returned to Congress this week with a bipartisan group of 14 Senate cosponsors, marking the eighth time some version of cannabis banking legislation has been introduced since 2013. Sponsors argue that the rescheduling momentum from President Trump's December executive order creates a window of opportunity that didn't exist in previous sessions.

What the bill does

The Secure and Fair Enforcement Regulation Banking Act would prohibit federal banking regulators from penalizing financial institutions that serve state-legal cannabis businesses. At its core, the bill addresses a structural problem: marijuana remains federally illegal, which means banks and credit unions risk federal enforcement action by providing accounts, loans, or payment processing to cannabis companies.

The result is an industry that operates overwhelmingly in cash. The National Cannabis Industry Association estimates that more than 70% of cannabis businesses lack access to basic banking services. This creates security risks, complicates tax compliance, and prevents cannabis companies from accessing the credit markets that every other legal industry relies on.

What's new in 2026

This version of the bill includes two significant additions:

Ancillary business protections. Previous versions focused narrowly on plant-touching businesses — cultivators, manufacturers, and dispensaries. The 2026 version explicitly extends safe harbor to ancillary businesses: landlords who lease to cannabis companies, technology vendors, accounting firms, and security providers.

Hemp operator coverage. In response to the evolving federal hemp landscape — including the upcoming November 2026 total-THC definition change — the bill adds protections for financial institutions serving state-legal hemp businesses.

The political math

The bill's 14 initial Senate cosponsors include eight Democrats and six Republicans, reflecting the increasingly bipartisan nature of cannabis banking reform. Previous versions have passed the House multiple times but stalled in the Senate, typically over disagreements about whether to attach broader social equity provisions.

Proponents argue that banking reform is fundamentally a public safety and regulatory compliance issue, not a legalization vote. "You can be against legalization and still believe that legal businesses should have bank accounts," one Republican cosponsor noted in a press statement.

Industry impact

If passed, the SAFER Banking Act would not legalize marijuana or change its scheduling status. What it would do is open the door to:

• Basic deposit accounts and payment processing
• Business loans and lines of credit
• Insurance products tailored to cannabis operations
• Merchant services that would allow dispensaries to accept credit and debit cards

Cannabis industry analysts estimate that banking access alone could reduce operating costs for the average dispensary by 5-10%, while significantly reducing the cash-related security incidents that have plagued the industry.

What to watch

The bill has been referred to the Senate Banking Committee, where its previous versions have received hearings but not floor votes. Committee Chair Tim Scott has signaled willingness to hold a hearing, though his personal position on the bill remains ambiguous. Floor action, if it comes, would likely not occur before the fall session.