For years, the cannabis industry has operated largely in cash, creating an ongoing challenge for both businesses and law enforcement. Despite legalization across much of the United States, federal prohibition has prevented most banks and credit unions from working with cannabis companies. The result is an economy where armored vehicles, cash-counting machines, and armed guards have become part of daily operations.
This problem stems from federal law. Under the Controlled Substances Act, cannabis remains illegal, and banks risk prosecution or regulatory penalties for “aiding and abetting” what is technically a federal crime. The American Bankers Association has consistently argued that this conflict between state and federal law leaves financial institutions trapped in uncertainty—forcing them to reject even legitimate, licensed cannabis accounts. Without access to normal banking services, dispensaries and distributors handle millions in cash weekly, a situation that increases theft risk and public safety concerns.
The proposed SAFER Banking Act (S.2860) aims to change this. A successor to the earlier SAFE Banking Act, it would shield banks and credit unions from federal penalties solely for providing financial services to state-legal cannabis businesses. By establishing a legal framework for cannabis banking, the Act would bring billions of dollars in cash into the regulated financial system. In practice, it creates a “safe harbor,” allowing businesses to open accounts, process payments, and access credit—without banks fearing federal enforcement.
That shift has major implications for the current reliance on armed transport. Today, dispensaries contract armored security companies to move cash from storefronts to secure vaults or state tax offices. Many retailers schedule multiple pickups each week, and distribution hubs often use armed couriers to pay vendors or move currency across locations. These operations are expensive, dangerous, and inefficient. If the SAFER Banking Act becomes law, much of that risk disappears. With the ability to deposit earnings electronically, cannabis companies could drastically reduce the need for armed cash runs, cutting costs and lowering the potential for robbery or loss.
Beyond safety, the benefits extend to transparency and accountability. Electronic transactions leave verifiable records that can assist regulators, auditors, and tax authorities. Local and state governments would no longer have to handle large volumes of physical currency for tax payments, simplifying compliance and oversight. At the same time, workers and vendors could be paid through direct deposit rather than cash envelopes, improving payroll management and workplace safety.
However, the bill doesn’t erase all compliance burdens. Financial institutions will still need to adhere to FinCEN’s guidance under the Bank Secrecy Act, including enhanced due diligence and suspicious activity reporting for cannabis clients. Rescheduling cannabis to Schedule III under federal law—something the Biden administration has signaled support for—may help with taxes and research but does not automatically grant full banking access. Only legislation like SAFER directly addresses that gap.
Still, the industry consensus is clear: the SAFER Banking Act could be a turning point. For cannabis retailers, cultivators, and transporters, banking access would normalize operations and significantly reduce the necessity of armored cash transport. Insurance premiums tied to theft risk may decline, and employees would no longer face the hazards of working in cash-heavy environments.
In the bigger picture, SAFER represents more than a banking fix—it’s a public safety reform. Moving billions of dollars from cash rooms and armored trucks into secure, traceable financial channels benefits everyone from business owners to law enforcement and communities. By reducing the industry’s dependence on armed transport and cash storage, the bill could mark the beginning of a safer, more transparent era for America’s cannabis economy.