The Secure And Fair Enforcement Banking Act of 2026 (SAFE Banking Act) aims to protect financial institutions providing services to state-sanctioned marijuana businesses and their service providers. It also extends similar protections and clarifications to hemp-related legitimate businesses, ensuring broader access to essential financial services. The bill prohibits federal banking regulators from taking adverse actions, such as terminating deposit insurance or discouraging services, against depository institutions solely for serving these state-legal entities. This includes protections for loans made to such businesses, their employees, or real estate owners leasing to them. Crucially, the legislation clarifies that proceeds from marijuana-related activities conducted by a state-sanctioned business in compliance with state law are not considered unlawful under federal money laundering statutes. This provision shields depository institutions, community development financial institutions, and insurers from federal liability for providing financial services to these businesses. Federal Reserve Banks and Federal Home Loan Banks also receive protection for services provided to such depository institutions. Income derived from a state-sanctioned marijuana business must be considered like any other legal income for federally backed single-family mortgage loan eligibility, protecting lenders from liability. For hemp-related businesses, federal banking regulators must update guidance to ensure compliance with federal laws and best practices for providing financial services, addressing existing banking access difficulties. The bill mandates the Federal Financial Institutions Examination Council to develop uniform guidance and examination procedures for depository institutions serving state-sanctioned marijuana businesses, including rules for accepting "legacy" cash deposits. The Secretary of the Treasury must also update guidance on Suspicious Activity Reports (SARs) to ensure continued reporting of illicit activity while aligning with the bill's purpose. Federal banking agencies are restricted from requesting or ordering depository institutions to terminate customer accounts, including those of state-sanctioned marijuana businesses, unless there is a written determination of unsafe practices or legal violations not based primarily on reputational risk . Exceptions apply for national security threats or involvement with state sponsors of terrorism, and institutions must generally inform customers of the justification for termination. To promote equity, the bill requires annual reports from federal banking regulators on financial service access for minority-owned, veteran-owned, women-owned, and small state-sanctioned marijuana and hemp businesses. The Government Accountability Office (GAO) will also study barriers to marketplace entry and financial service access for these diverse businesses, providing recommendations. The bill explicitly states it does not require any financial institution to provide services to marijuana or hemp businesses. It also preserves the general examination and enforcement authority of federal banking regulators and law enforcement's ability to investigate money laundering from illegal activities unrelated to compliant state-sanctioned marijuana operations.