Thirty-two attorneys general have united behind a bipartisan push to revolutionize how America’s $30 billion cannabis industry handles money, with Arizona’s top prosecutor leading the charge against what she calls “dangerous” cash-only business operations. Arizona Attorney General Kris Mayes joined this coalition advocating for Congress to pass the SAFER Banking Act of 2025, legislation designed to create legal protections for financial institutions serving state-regulated cannabis businesses.
The current banking landscape resembles financial prohibition more than regulation. Federal classification of cannabis as illegal prevents banks from serving dispensaries and related businesses, forcing an entire industry worth $30.1 billion in 2024 sales to operate primarily in cash. Banks fear prosecution for money laundering or federal law violations if they handle proceeds from cannabis sales, leaving 425,000 industry workers and countless customers exposed to heightened robbery risks.
This cash-dependent system creates what Mayes describes as “inefficient” and “dangerous” business models. Dispensaries cannot access basic financial services including deposits, loans, or credit card processing. The result? Businesses stuffed with cash become prime targets for violent crimes, while employees face daily safety hazards that workers in other industries never encounter. This situation mirrors challenges faced in Canada, where despite full legalization in 2018, businesses still struggle with financial access restrictions.
The bipartisan nature of this coalition signals considerable momentum for reform. Both Democratic and Republican attorneys general recognize that current restrictions create more problems than they solve. The SAFER Banking Act would establish “safe harbor” provisions, allowing banks to serve cannabis businesses without fear of federal penalties.
Beyond safety concerns, the cash-only model hampers effective governance and taxation. State agencies sometimes find banks refusing to accept cannabis-related tax payments, complicating revenue collection in the 21 states where cannabis contributes considerably to public coffers. The industry experienced a 4.5% year-over-year increase in sales, demonstrating continued growth despite these banking obstacles.
Regulatory oversight becomes nearly impossible when transactions remain opaque and primarily cash-based. Industry experts project regulated cannabis sales could reach $34 billion by 2025’s end, making current banking restrictions increasingly untenable. The coalition’s letter to congressional leaders emphasizes that reform represents more than business convenience, it’s a public safety imperative.
Streamlined banking access would enable law enforcement and regulators to better track financial transactions, deterring criminal activity while improving compliance monitoring. Cash-heavy businesses complicate accurate tax collection and make regulatory oversight challenging for state governments already managing complex cannabis programs. Currently, 39 states have established medical cannabis programs alongside the District of Columbia and three territories, creating a patchwork of regulated markets operating under federal banking restrictions.
The attorneys general argue that federal banking clarity would transform an industry currently operating in financial shadows into one with proper oversight, transparency, and safety protocols that extend far beyond dispensary doors to entire communities dealing with cannabis commerce’s current cash complications.
