What is the SAFE Banking Act?


Cannabis industry advocates and executives had their hopes dashed once again after Senate Minority Leader Mitch McConnell (R-Ky.) blocked the SAFE Banking Act from Congress' $1.7 trillion omnibus spending bill, The Hill reports. This is the third time the bill has failed to get through the Senate, a blow to an industry that grows larger yearly.
The Secure and Fair Enforcement (SAFE) Banking Act is a bipartisan bill that would reverse federal restrictions blocking cannabis business owners from accessing financial services. Even though 37 states have legalized or decriminalized marijuana, the drug remains illegal on the national level. Because of this, cannabis business owners face an uphill battle when trying to secure banking services. Banks and other financial institutions that process funds for cannabis companies are at risk of being charged with money laundering, and federal regulatory agencies could also impose fines and penalties for violating federal laws.
Despite bipartisan support for the bill in both chambers, McConnell has been adamant about not allowing it to advance. He first blocked the act from inclusion in the defense bill earlier this month, claiming it would make the nation's financial system "more sympathetic to illegal drugs," per The Hill.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Supporters of the SAFE Banking Act warn that failure to pass it could negatively affect the cannabis industry. Without access to financial institutions, most cannabis businesses operate cash-only establishments, which puts them at risk of robbery and encourages the proliferation of the illegal market.
"Not only did the Senate squander a chance to score a bipartisan victory this year," said Khadijah Tribble, CEO of the U.S. Cannabis Council, "its inaction threatens public safety and undermines the progress states are making in mending the racial inequities of the war on drugs."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Theara Coleman has worked as a staff writer at The Week since September 2022. She frequently writes about technology, education, literature and general news. She was previously a contributing writer and assistant editor at Honeysuckle Magazine, where she covered racial politics and cannabis industry news.
-
Cytomegalovirus can cause permanent birth defects
The Explainer The virus can show no symptoms in adults
-
Summer in Seattle: Outdoor dining like nowhere else
Feature Featuring a patio with a waterfront view, a beer garden, and more
-
Ari Aster revisits the pandemic, Adam Sandler tees off again and Lamb Chop gets an origin story in July movies
the week recommends The month's film releases include 'Eddington,' 'Happy Gilmore 2' and 'Shari & Lamb Chop'
-
AI scammer fakes Rubio messages to top officials
Speed Read The unknown individual mimicked Rubio in voice and text messages sent to multiple government officials
-
SCOTUS greenlights Trump's federal firings
speed read The Trump administration can conduct mass federal firings without Congress' permission, the Supreme Court ruled
-
New tariffs set on 14 trading partners
Speed Read A new slate of tariffs will begin August 1 on imports from Japan, South Korea, Thailand and more
-
Elon Musk launching 'America Party'
Speed Read The tech mogul promised to form a new political party if Trump's megabill passed Congress
-
How will Trump's megabill affect you?
Today's Big Question Republicans have passed the 'big, beautiful bill' through Congress
-
Judge blocks Trump's asylum ban at US border
Speed Read The president violated federal law by shutting down the US-Mexico border to asylum seekers, said the ruling
-
Thai court suspends prime minister over leaked call
Speed Read Prime Minister Paetongtarn Shinawatra has been suspended, pending an ethics investigation
-
Senate passes GOP megabill after Alaska side deal
The pivotal yes vote came from Sen. Lisa Murkowski, whose support was secured following negotiated side deals for her home state Alaska