SAFE Banking Act Stalls Despite Schedule III Reclassification

Banking Reform Absent from Post-Rescheduling Agenda

The SAFE Banking Act remains stuck in the Senate Banking Committee with no movement since the Schedule III reclassification took effect three weeks ago. Senate Majority Leader Chuck Schumer hasn't scheduled floor time for the measure. House leadership has signaled no plans to prioritize cannabis banking despite bipartisan support in previous sessions. The cleanest read on this stall? Rescheduling satisfied enough moderate Democrats to drain urgency from the banking debate.

Schedule III status doesn't resolve the core banking problem. Federal financial regulators still classify cannabis revenue as high-risk under Bank Secrecy Act guidelines, and most national banks continue to refuse accounts for plant-touching businesses. The Federal Reserve hasn't issued updated guidance since the DEA order, leaving compliance officers with the same risk calculus they faced under Schedule I.

State Operators Face Unchanged Cash Burden

Multi-state operators and independent dispensaries report no change in banking access since rescheduling, forcing continued reliance on cash operations and costly workarounds. Curaleaf, Trulieve, and Green Thumb Industries all confirmed in May earnings calls that they maintain the same banking relationships—primarily credit unions and state-chartered institutions—that existed before the DEA order. None reported new accounts with top-tier national banks.

The operational burden is identical: armored transport, cash-counting infrastructure, and the 15-25% premium paid to service providers willing to handle cannabis cash.

Smaller operators face steeper challenges. Independent dispensaries in California and Michigan report monthly banking costs of $8,000 to $15,000 for services that non-cannabis retailers receive at negligible expense. The lack of SAFE Banking protections means these costs persist regardless of Schedule III status.

What Comes Next for Federal Banking Reform

Industry advocates are pivoting to administrative pressure on the Federal Reserve and Treasury rather than waiting for congressional action. The National Cannabis Industry Association submitted a formal petition to the Fed on May 20 requesting updated Bank Secrecy Act guidance that reflects Schedule III status. Treasury's Financial Crimes Enforcement Network hasn't responded to the petition.

The legislative path forward is murky. SAFE Banking passed the House seven times between 2019 and 2024 but never cleared the Senate—and with rescheduling complete, the political coalition that kept the bill alive has fractured. Senate Republicans who supported SAFE as a compromise measure now argue the issue is resolved, while progressive Democrats continue to demand broader criminal justice provisions that moderate members reject.

For background on the legislative history and current status of this reform effort, see the CannIntel topic hub on the SAFE Banking Act.

The next signal: whether FinCEN issues administrative guidance by the end of Q2, which would provide regulatory cover for banks without requiring new legislation. Absent that, operators face the same cash-intensive model through at least the end of 2026.