This legislation, known as the Secure And Fair Enforcement Banking Act of 2026 or the SAFE Banking Act of 2026, aims to create a safe harbor for financial institutions that provide services to State-sanctioned marijuana businesses and their service providers. Its primary purpose is to reconcile the conflict between state laws legalizing marijuana and federal laws that still classify it as a controlled substance, thereby enabling legitimate cannabis businesses to access essential financial services. The bill prohibits federal banking regulators from taking adverse actions against depository institutions solely for providing financial services to State-sanctioned marijuana businesses or their service providers. This includes preventing the termination of deposit insurance, discouraging services, or taking supervisory actions on loans. These protections extend to employees, owners, and operators of such businesses, as well as those who lease real estate or equipment to them. Crucially, the bill stipulates that proceeds from marijuana-related activities of a State-sanctioned marijuana business, operating in compliance with state law, shall not be considered proceeds from an unlawful activity under federal money laundering statutes (18 U.S.C. 1956 and 1957). Financial institutions, community development financial institutions, insurers, and their personnel are protected from federal liability solely for providing financial services to these businesses or investing related income. Furthermore, the legislation provides protections against criminal, civil, or administrative forfeiture for legal interests in collateral held by depository institutions, Federal Reserve Banks, Federal Home Loan Banks, and federal mortgage entities. This safeguard applies to loans or financial services provided to State-sanctioned marijuana businesses or their associated parties, explicitly excluding marijuana or marijuana products as collateral. The bill also addresses banking services for hemp-related legitimate businesses and service providers, recognizing that they continue to face banking access difficulties despite hemp's federal legalization. It mandates federal banking regulators to update guidance within 90 days to ensure compliance and best practices for financial institutions serving these businesses. Regarding federally backed single-family mortgage loans, income derived from a State-sanctioned marijuana business will be treated in the same manner as any other legal income for eligibility purposes. Lenders, servicers, and federal agencies involved in these loans are protected from liability solely for considering such income or accepting it as payment. The Secretary of the Treasury is required to amend or issue new guidance for filing suspicious activity reports (SARs) related to State-sanctioned marijuana businesses within 180 days. This ensures consistency with the bill's intent while preserving the ability of the Financial Crimes Enforcement Network (FinCEN) to combat illicit activity. New requirements are established for federal banking agencies regarding customer account termination requests. Agencies may not request or order a depository institution to terminate an account based primarily on reputational risk , requiring a written determination of unsafe practices or rule violations. Exceptions apply for national security threats or involvement in terrorist financing. Agencies must provide written justifications for termination orders (unless prohibited for national security or criminal investigation reasons) and submit annual reports to Congress detailing the number of account termination requests and the legal authority relied upon. This aims to increase transparency and accountability in banking supervision. Finally, the bill mandates an annual diversity and inclusion report from federal banking regulators and a Government Accountability Office (GAO) study on barriers to marketplace entry and financial access for minority-owned, veteran-owned, women-owned, and small State-sanctioned marijuana and hemp businesses. It clarifies that the bill does not *require* financial institutions to provide services and does not limit federal law enforcement's ability to investigate money laundering from *illegal* activities.