The SAFER Banking Act: Why Cannabis Businesses Still Can't Get a Bank Account
The SAFER Banking Act has passed the Senate Banking Committee but faces an uncertain path to full passage. Here's why cannabis banking reform matters — and what's blocking it.
David Kim
Industry & Business Editor, Cannabis Dispensary
The cannabis industry generates over $30 billion in annual legal sales in the United States, yet most cannabis businesses cannot open a basic bank account. This is not a minor inconvenience — it is a fundamental barrier to business operations, worker safety, and tax compliance.
Why Banks Won't Serve Cannabis Businesses
Under the Bank Secrecy Act and federal anti-money laundering laws, banks that knowingly provide services to businesses engaged in federally illegal activity risk criminal prosecution and regulatory sanctions. Since cannabis remains a Schedule I controlled substance federally, most banks refuse to serve cannabis businesses regardless of their state-legal status.
The Consequences
The cash-only nature of most cannabis businesses creates serious problems. Employees are paid in cash, creating payroll tax compliance challenges. Businesses cannot access credit or loans. Cash-heavy operations are targets for robbery — cannabis dispensary robberies have increased significantly as the industry has grown. Tax payments must be made in cash, creating logistical nightmares for both businesses and the IRS.
The SAFER Banking Act
The Secure and Fair Enforcement Regulation (SAFER) Banking Act would prohibit federal banking regulators from penalizing banks that serve state-legal cannabis businesses. It passed the Senate Banking Committee in September 2023 with bipartisan support — the first time a cannabis banking bill had advanced that far in the Senate. However, it has not yet received a full Senate floor vote.
What's Blocking It
Opposition comes from several directions. Some senators want cannabis banking reform tied to broader cannabis legalization. Others have concerns about money laundering risks. The banking industry itself is divided — some banks want the legal clarity, others prefer the status quo.
The Path Forward
Cannabis banking reform has broader bipartisan support than full legalization. Industry advocates are pushing for a standalone vote, while legalization advocates want it bundled with broader reform. The outcome will significantly affect the cannabis industry's ability to operate as a normal business.