By Guy Page
Vermont Attorney General Charity Clark has joined a coalition of attorneys general from across the country in urging Congress to pass a law allowing state-regulated cannabis businesses to use the federally-regulating banking system.
Cannabis growing, production and sale is currently illegal under federal law, and state-legal businesses are not permitted to access any banking services.
In a letter sent this week to congressional leaders, the attorneys general argue that federal restrictions preventing banks from working with legal cannabis companies have created serious public safety and financial oversight problems. Because most cannabis businesses are forced to operate in cash, they are at increased risk of robbery and financial crimes, the letter states.
Opponents of SAFER (Secure And Fair Enforcement Regulation) banking legislation, long sought by the marijuana industry, say it could lead to higher THC levels and money laundering by cartels. (VDC was unable to find current SAFER legislation on the Congress.gov website.)
In 2023, Sen. Pete Ricketts (R-Nevada) and three other senators expressed their concerns about how the SAFER Banking Act would facilitate money laundering for drug cartels as well as investments in the industry that could lead to even higher THC potency in marijuana products. The letter was signed by Ricketts and Senators John Cornyn (R-TX), Ted Budd (R-NC), and James Lankford (R-OK).
“The growth of the marijuana industry has already caused THC potency to skyrocket from 2-5% in the 1970s to 99% in many concentrates sold today,” the senators wrote. “The significant mental health damage to youth caused by these products will only worsen with the passage of the SAFER Banking Act, as the industry will use new investments to increase potency further and bring in new users, including children. Marijuana use is associated with psychosis, motor vehicle accidents, respiratory problems, and low birth weight.”
“This legislation also compromises the integrity of the United States banking system by giving banks government approval to participate in illegal activity, setting a dangerous new precedent,” the senators continued. “Allowing banking access to a Schedule I drug sets a dangerous legal precedent and will help facilitate money laundering for drug cartels.”
“Cannabis businesses that operate legally under state law shouldn’t be forced into the shadows of the financial system,” Clark said. “The SAFER Banking Act would provide clear, common-sense guidelines for financial institutions while supporting public safety, tax enforcement, and state regulatory oversight.”
48 out of 247 Vermont towns and cities have opted into retail sales, which is about 32% of municipalities throughout the state, according to Vermontgrowers.org. Sales from Vermont’s legal marijuana industry for the first four months of 2025 was $46 million.
Public safety and economic concerns
According to the coalition’s letter, the lack of access to traditional banking services places employees and customers at greater risk of violence, hinders tax collection, and makes it harder for regulators to track transactions and enforce the law. The attorneys general argue that integrating cannabis operations into the banking system would improve transparency and security.
The legal cannabis industry reported $30.1 billion in retail sales in 2024, with an estimated 425,000 jobs nationwide, according to the letter. Annual sales could reach $34 billion by the end of 2025.
Nearly 75% of Americans now live in jurisdictions where some form of cannabis is legal, Clark claims. Currently, 39 states, three U.S. territories, and Washington, D.C. allow medical cannabis, while 24 states and two territories have legalized adult-use cannabis.
Despite legalization at the state level, cannabis remains illegal under federal law. This inconsistency has led many banks and credit unions to refuse service to cannabis businesses, even when they are fully compliant with state laws.
Supporters of the SAFER Banking Act say it would provide a safe harbor for financial institutions that choose to serve cannabis-related businesses in states with appropriate regulatory systems.