In one paper For federal lawmakers, the American Bankers Association (ABA) called for passage of the SAFE Banking Act — a proposal that seeks to normalize banking access for state-approved cannabis companies. In the letter, Naomi Camper, chief policy officer for the ABA, said the law “would improve public safety, help the government combat illegal financing, and provide a critical measure of security in response to the evolving legal landscape by giving cannabis businesses that operate in full compliance with state laws access to essential financial services.”

“Although almost every US state has legalized marijuana in some form, the uncertain legal landscape governing the revenue of these state-licensed businesses means that these businesses often operate on a cash basis, outside of the regulated banking system.” — Camper, on paper

Camper added that normalizing banking for cannabis businesses would “remove the barriers to banking these funds” and allow funds to flow more freely to non-cannabis businesses that work with the cannabis industry, including accountants, skilled traders, landlords and law firms.

Further, Camper notes that recent federal changes regarding cannabis—specifically rescheduling medical cannabis from Schedule I to Schedule III under the Controlled Substances Act—”emphasize the need for Congress to act.”

“Passage of this legislation would reduce the risk of illicit financing and increase financial transparency for cannabis and hemp-derived revenues,” Camper wrote in the letter. “Banks and other highly regulated financial institutions must adhere to strict anti-money laundering and anti-terrorist financing laws and regulations, conduct due diligence on their customers, screen transactions for suspicious activity and keep records.

Previous versions of the SAFE Banking Act have passed the House seven times, most recently in 2023. The current version of the legislation has been referred to the Committee on Financial Services and in addition to the Judiciary and Veterans Affairs Committees.

Ganjapreneur: Providing everyday knowledge since 2014, the leading digital business magazine for cannabis industry professionals. Subscribe to the newsletter to join our community of over 40,000 cannabis entrepreneurs.