SAFE Banking Act of 2026

Protections for Financial Institutions: Depository institutions are protected from having their deposit insurance terminated or being penalized solely because they provide services to State-sanctioned marijuana businesses or service providers (Section 3).

Legal Protections for Business Operations: Proceeds from marijuana-related activities of a State-sanctioned marijuana business conducting activity in compliance with State, Indian Tribe, or political subdivision law shall not be considered proceeds from an unlawful activity (Section 4).

Liability Shield for Financial Entities: Depository institutions, community development financial institutions, and insurers, along with their officers and employees, may not be held liable under Federal law solely for providing financial services to these businesses (Section 5).

Mortgage Eligibility: Income derived from a State-sanctioned marijuana business operating in compliance with local laws will be considered legal income when determining eligibility for a federally backed single-family mortgage loan (Section 9).

Collateral Protection: Entities with a legal interest in collateral for loans provided to owners, employees, or operators of State-sanctioned marijuana businesses—or those leasing real estate/equipment to them—will not be subject to criminal, civil, or administrative forfeiture solely for providing those services (Section 5).

Support for Hemp Businesses: The bill directs federal banking regulators to update guidance to address the needs of hemp-related legitimate businesses and service providers (Section 8).

Focus on Diversity and Inclusion: Federal banking regulators must submit annual reports on the availability of financial services for minority, veteran, women, and small State-sanctioned marijuana and hemp businesses (Section 11).

No Requirement to Provide Services: The bill explicitly states that nothing within the Act shall require a depository institution, community development financial institution, or insurer to provide financial services to a State-sanctioned marijuana business, service provider, or any other business (Section 15).

National Security Exceptions: Federal banking agencies may still order the termination of customer accounts if they believe the customer poses a threat to national security or is involved in terrorist financing (Section 10).