As the cannabis industry enters the second half of 2025, the issue of access to financial services remains one of its most persistent and unresolved challenges. Despite expanded legalization at the state level and growing public support, cannabis operators continue to face substantial barriers when it comes to banking, capital access and payments infrastructure.
Progress in the first half of the year has been minimal. The SAFER Banking Act remains in legislative limbo, awaiting attention in a crowded congressional calendar. While the bill enjoys bipartisan support and is widely seen as a common-sense solution to a long-standing problem, it has been repeatedly sidelined in favor of higher-priority budget and tax measures.
For businesses operating in compliance with state laws, the lack of federal action is more than an inconvenience—it’s a threat to public safety, a roadblock to economic growth and a deterrent to legitimate investment. The continued reliance on cash, limited access to credit and banking instability are not sustainable conditions for any modern industry.
Rescheduling Isn’t a Silver Bullet
Amid the legislative gridlock, attention has turned to federal rescheduling. The DEA is still considering reclassifying cannabis under Schedule III of the Controlled Substances Act. While this would offer relief from the burdensome 280E tax rule and could improve financial margins for operators, it does not address the banking issue in full.
Rescheduling would not resolve the core compliance concerns financial institutions face under the Bank Secrecy Act (BSA). Institutions would still be required to report on cannabis-related transactions and monitor for illicit activity with the same rigor as they do now. These obligations remain in place unless there is a specific change to federal banking law or regulatory guidance.
Moreover, rescheduling could complicate things further if it triggers additional regulatory oversight without offering a clear path for cannabis operators and financial service providers. Without corresponding reforms to banking policy, the effect of rescheduling on access to financial services may be limited at best.
Policy Inertia Has Consequences
The disconnect between state-legal cannabis operations and federal financial policy is not just a bureaucratic mismatch. It has real consequences. Operators are often denied loans, lose access to bank accounts with little warning, and are forced to rely on workarounds that increase risk and reduce transparency. Emerging businesses, particularly those run by social equity licensees, face steep barriers to entry due to limited access to traditional capital.
There’s also a broader public safety concern. Cash-heavy businesses are frequent targets for theft and crime, placing employees and communities at risk. And the opacity of a largely cash economy makes regulatory oversight more difficult.
What to Watch in the Second Half of 2025
Looking ahead, a few potential developments could shape the financial outlook for the cannabis industry:
Legislative Movement on SAFER Banking
Should Congress make headway on budget legislation, attention may return to SAFER Banking. While expectations for comprehensive federal legalization remain low in the near term, targeted reforms like SAFER still have a realistic chance—particularly if stakeholders maintain pressure and unity in messaging.
Renewed Interest in the STATES Act
With mounting frustration over stalled federal reform, some lawmakers and advocates are reviving interest in the STATES Act—a bipartisan proposal that would affirm states' rights to regulate cannabis without federal interference. If reintroduced, the STATES Act could provide much-needed clarity by shielding compliant operators from federal penalties, easing restrictions for financial institutions, and opening the door to broader banking access. While it faces an uphill climb, the act could gain traction as a more politically palatable alternative to comprehensive legalization.
Treasury and FinCEN Action
Even without new legislation, federal agencies can issue updated guidance to reduce uncertainty for financial institutions. FinCEN could revise its 2014 guidance to reflect the realities of today’s cannabis marketplace and clarify expectations for compliance under rescheduling.
State-Level Innovation
Some states are exploring ways to encourage or enable cannabis banking through local institutions. These experiments may not solve the problem nationally but could serve as important case studies for risk management and compliance.
Industry Readiness
Whether reforms come later this year or beyond, cannabis businesses and financial institutions must be prepared. Clear documentation, robust compliance programs and transparent financial practices will be essential in any future regulatory environment.
A Need for Pragmatic Solutions
It’s easy to talk about cannabis banking reform as a matter of fairness or principle. But it’s also a practical issue—one that affects job creation, tax collection, small business formation and public trust. While comprehensive federal reform remains a distant prospect, the need for actionable, incremental solutions is immediate.
Banking access is not a luxury. It’s a prerequisite for a safe, stable and inclusive cannabis industry. And until federal policy aligns with state realities, progress will continue to depend on the willingness of stakeholders to adapt, innovate, and advocate.
Terry Mendez is the CEO of Safe Harbor Financial (NASDAQ: SHFS), a leader in facilitating financial services and credit facilities to the regulated cannabis industry. He has led efforts to facilitate compliant banking and credit solutions across regulated markets in the U.S.
