Arizona Attorney General Kris Mayes has joined a coalition of more than 30 state attorneys general demanding congressional action on cannabis banking reform, citing escalating public safety concerns tied to the industry’s forced reliance on cash transactions. The bipartisan coalition sent a joint letter to Congress supporting passage of the SAFER Banking Act of 2025, positioning the reform as a critical public safety and regulatory necessity rather than solely a cannabis policy initiative.
The legal cannabis industry reached $30.1 billion in retail sales during 2024, representing a 4.5% year-over-year increase, with projections indicating growth to $34 billion by 2025. This legitimate economic sector directly supports approximately 425,000 jobs nationwide and generates significant tax revenues for 21 states and several territories.
Despite this substantial economic impact, federal banking restrictions continue to force cannabis businesses to operate almost entirely in cash. Cash-only operations create dangerous conditions for dispensaries, employees, and customers. Robberies and violent crimes frequently target these businesses, with staff members particularly vulnerable during money drops and transfers.
Cash-only cannabis operations create dangerous conditions, making dispensaries prime targets for robberies and putting employees at serious risk.
Law enforcement agencies struggle to track illegal activity when transactions lack electronic records, while cash handling complicates basic security logistics across the industry. Public officials consistently highlight these crime risks as urgent justification for banking reform.
Current federal law prohibits banks from serving state-legal cannabis businesses, causing most financial institutions to refuse service rather than risk federal prosecution or regulatory penalties. This restriction extends beyond basic banking to insurance and other financial products, severely limiting risk management options for cannabis operators. Dispensaries cannot offer credit or debit card payments, perpetuating their dangerous cash dependency.
The banking restrictions also undermine regulatory oversight and tax collection efforts. Cash-based businesses complicate audit trails and reporting requirements, hindering effective tax enforcement by both federal and state agencies. Electronic banking access would enable better transaction tracking and bolster compliance with tax obligations.
Regulatory oversight suffers when operations lack standard banking infrastructure, while transparent transaction records could reduce money laundering opportunities. According to recent data, only 831 financial institutions currently provide services to cannabis businesses nationwide, leaving the vast majority of operators without access to banking. The SAFER Banking Act represents an evolution from previous legislative attempts, including earlier versions of the SAFE Banking Act that stalled despite House approval.
The 2025 rebranding expands the proposed safe harbor to include insurance and other financial services, broadening its potential policy impact beyond basic banking access. The proposed legislation would create a safe harbor for banks serving state-regulated cannabis businesses while respecting state sovereignty over their cannabis markets. Currently, 39 states, three territories, and D.C. permit medical cannabis use, demonstrating the widespread acceptance of regulated cannabis programs. Arizona’s participation in this multistate coalition reflects growing recognition that cannabis banking reform addresses fundamental public safety and economic stability concerns.
With state-regulated markets continuing to expand and generate substantial economic activity, the disconnect between state legalization and federal banking policy creates increasingly untenable conditions for businesses, workers, and communities across the cannabis sector.
