Safe Banking Act - UPDATE June 2026
UPDATE – June 2026:
SAFE Banking is back on the Hill, and this time it returns to Congress in a very different federal landscape for cannabis. Federal scheduling conversations have changed, but the need for real banking access for state-licensed cannabis operators remains urgent.
For operators throughout Montana, the reintroduction of this bipartisan bill matters directly to day-to-day safety, access to capital, financial transparency, and the long-term viability of a regulated cannabis market.
For The Hi-Line Co., Euphoria Wellness, Mission Mountain, and other Montana-based businesses connected to national advocacy efforts, SAFE Banking is more than a policy headline. It is part of the practical infrastructure licensed cannabis businesses need in order to operate safely, responsibly, and with the same basic financial tools available to other legal industries
SUMMARY OF THE SAFE BANKING ACT
This bill is designed to prohibit a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business. Prohibited penalties include: 1. terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate cannabis-related business and 2. prohibiting or otherwise discouraging a depository institution from offering financial services to such a business.
It also states that proceeds from a transaction involving activities of a legitimate cannabis-related business are not considered proceeds from unlawful activity..
In addition, under federal law a depository institution could not be held liable or subject to asset forfeiture for providing a loan or other financial services to a legitimate cannabis-related business.
The bill provides that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism.
Finally, the bill decreases the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)
About the American Bankers Association
The American Bankers Association is the voice of the nation’s $24 trillion banking industry, which is composed of small, regional and large banks that together employ approximately 2.1 million people, safeguard $19 trillion in deposits and extend $12.4 trillion in loans.
In addition, under federal law a depository institution could not be held liable or subject to asset forfeiture for providing a loan or other financial services to a legitimate cannabis-related business.
The bill provides that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism.
Finally, the bill decreases the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)
