A significant legislative push is underway as a bipartisan coalition of attorneys general nationwide, including Arizona’s Kris Mayes, urges Congress to enact the SAFER Banking Act of 2025. This pivotal legislation aims to resolve the longstanding federal banking dilemma faced by the burgeoning state-regulated cannabis industry.
At its core, the SAFER Banking Act seeks to provide essential legal clarity, enabling financial institutions to confidently offer banking services to legitimate cannabis businesses operating within states where cannabis is legal. This critical update to federal law would bridge the gap between state-level legalization and federal banking restrictions, fostering a safer and more transparent financial environment.
The current federal prohibitions against banking for cannabis businesses force these enterprises, regardless of their legality at the state level, to operate predominantly as cash-only ventures. This creates substantial public safety risks, making them prime targets for theft and illicit activities, and complicating legitimate financial transactions.
Attorney General Kris Mayes has highlighted the SAFER Banking Act as a pragmatic and overdue solution. She emphasizes that its passage would not only protect the workers and communities involved in the cannabis industry but also streamline effective tax collection and enhance robust regulatory oversight of these enterprises.
The economic impact of the state-regulated cannabis sector is undeniably substantial and continues to grow. Data indicates that U.S. legal cannabis retail sales surged to an impressive $30.1 billion in 2024, marking a solid 4.5% year-over-year increase, underscoring its significant contribution to the national economy.
This thriving cannabis industry currently supports approximately 425,000 jobs across the United States, providing considerable employment opportunities. Industry experts further project that combined U.S. annual sales could escalate even higher, potentially reaching $34 billion by the close of 2025, signaling continued robust expansion.
Despite these impressive economic contributions, a paradoxical challenge persists: states are struggling to deposit collected cannabis tax revenues. The attorneys general report that numerous state agencies have been turned away by financial institutions when attempting to remit these substantial payments due to lingering federal ambiguity.
The collective appeal from these attorneys general underscores the urgent need for financial regulation reform within the cannabis banking sector. Passing the SAFER Banking Act would not only mitigate significant risks but also ensure that a rapidly expanding and job-creating industry can operate with the financial infrastructure it requires for legitimate growth and societal benefit.
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