SAFE Banking Act of 2026

The SAFE Banking Act of 2026 aims to reduce legal risks for banks and credit unions that provide financial services to businesses operating marijuana or hemp industries under state laws. It establishes a "safe harbor" that prevents federal regulators from penalizing, terminating insurance for, or restricting these institutions solely because they serve state-sanctioned marijuana or hemp companies. The bill also clarifies that income from these businesses can be used to qualify for federally backed mortgages and protects banks from liability regarding money laundering charges when dealing with compliant state operations. Additionally, the legislation requires federal agencies to update guidance on how to handle suspicious activity reports for these sectors and mandates annual studies on access to financial services for minority and small businesses in the industry.