SAFER Banking Act Frozen as Lawmakers Tackle War and Budget Issues

LOS ANGELES – The Secure and Fair Enforcement Regulation (SAFER) Banking Act, a bipartisan effort to grant state-legal cannabis businesses access to traditional banking services, remains mired in political gridlock, overshadowed by competing legislative priorities.

Sen. Jeff Merkley (D-OR), a lead sponsor of the bill, recently acknowledged that despite his efforts to push the legislation forward, issues like war and budget reconciliation bills have taken precedence, leaving the SAFER Act in a holding pattern. In an interview with Marijuana Moment, Merkley expressed frustration but remained cautiously optimistic, stating:

“We’ve tried to schedule several meetings. We keep trying to do it,” adding that he hopes the bill will see action “sooner than later.”

His Republican co-sponsor, Sen. Bernie Moreno (R-OH), offered a less hopeful timeline, suggesting the bill might not reach the Senate floor until fall at the earliest.

The SAFER Banking Act aims to address a critical issue for the cannabis industry: the inability of state-legal businesses to access banking services due to federal prohibition. Without access to bank accounts, loans, or credit card processing, many cannabis businesses are forced to operate in cash, creating significant public safety risks.

“Forcing legal businesses to operate in all-cash is dangerous for our communities; it’s an open invitation to robberies, money laundering, and organized crime,” Merkley said in a prior statement.

The bill, which would prevent federal regulators from penalizing banks for serving state-sanctioned cannabis businesses, has garnered broad bipartisan support. It cleared the Senate Banking Committee in September 2023 with a 14-9 vote, marking a historic step forward after years of stalled progress. The House has passed versions of the bill seven times since 2017, most recently as the SAFE Banking Act, but it has repeatedly failed to gain traction in the Senate.

Despite this momentum, the SAFER Act has been consistently sidelined by larger legislative battles. Recent hopes that it might be attached to a cryptocurrency package were dashed, and Senate Majority Leader Chuck Schumer’s earlier attempts to include it in a government funding bill were blocked by Republican leadership during the 2024 lame-duck session. Adding to the complexity, some conservative House members, such as Rep. Blaine Luetkemeyer (R-MO), have raised concerns about provisions like Section 10, which addresses deposit account terminations, fearing it could inadvertently affect other industries like firearms or payday lending.

On the House side, Rep. Dave Joyce (R-OH), a co-sponsor and co-chair of the Congressional Cannabis Caucus, plans to reintroduce the bill but has signaled no immediate action, according to his staff. Meanwhile, President Donald Trump, who voiced support for cannabis banking reform and rescheduling during his 2024 campaign, has yet to prioritize the issue since taking office in 2025.

The stakes are high for the cannabis industry, which employs over 500,000 workers nationwide and generates billions in revenue. Operating in cash not only increases the risk of crime but also hampers business growth and tax compliance. The Congressional Budget Office estimated in 2024 that the SAFER Act could lead to billions in federally insured deposits from cannabis businesses, a move that financial giants like JPMorgan Chase have indicated they would welcome if federal law permits.

Advocates remain cautiously hopeful but frustrated.

“The focus is on political jockeying and avoiding a government shutdown,” said Morgan Fox of the National Organization for the Reform of Marijuana Laws (NORML). “Cannabis is not high on anyone’s priority list.”

Still, supporters like the Independent Community Bankers of America argue that the bill’s regulatory safe harbor would encourage more community banks to serve the industry, addressing both safety and economic concerns.

As the 119th Congress navigates a crowded legislative agenda, the SAFER Banking Act remains a tantalizingly close yet elusive goal. For now, cannabis businesses and their employees must continue to navigate the risks of an all-cash economy, waiting for lawmakers to clear the clutter and deliver on a promise of reform that has been years in the making.