1. Federal cannabis rescheduling impacts Safe Harbor’s growth positively. 2. Improved financial strength expected for cannabis operators enhances SHFS market. 3. Rescheduling may attract banks but core banking challenges remain. 4. Elimination of Section 280E boosts operator cash flow and profitability. 5. Safe Harbor’s infrastructure supports specialized cannabis banking needs.
FAQ
Why Bullish?
Rescheduling elevates cannabis market, enhancing Safe Harbor's lending and banking operations, boosting investor confidence.
How important is it?
The article highlights crucial shifts in regulation that directly bolster Safe Harbor's business principles.
Why Long Term?
Long-term growth is anticipated as federal policy stabilizes and capitalizes on enhanced cannabis economics.
Federal Cannabis Rescheduling Promises Growth Opportunities for Safe Harbor Financial (SHFS)
DENVER, Dec. 18, 2025 (GLOBE NEWSWIRE) - SHF Holdings, Inc., operating as Safe Harbor Financial (NASDAQ: SHFS), has announced that the recent federal rescheduling of cannabis presents a significant policy shift with long-term implications for its banking platform. This reclassification aims to enhance the financial stability of cannabis operators, decrease industry attrition, and promote financial institution participation, ultimately expanding the addressable market for Safe Harbor’s fully managed platform.
CEO Terry Mendez Comments on Policy Shift
Terry Mendez, CEO of Safe Harbor, praised President Trump's executive order to reschedule cannabis, stating, “This marks a monumental shift in tone from Washington and a long-awaited acknowledgment of the disconnect between federal policy and today’s regulated cannabis economy.” Mendez emphasized that while the rescheduling might alleviate some operational burdens for both operators and financial institutions, it does not tackle the critical need for clear, durable banking protections.
Expanding Opportunities for SHFS
According to Mendez, any step that bolsters operators or fosters broader participation from financial institutions directly augments the long-term opportunities for Safe Harbor’s banking platform. The company’s platform is designed to facilitate compliant growth as regulations evolve. However, he cautioned that rescheduling should not be mistaken for comprehensive financial reform. “The cannabis sector deserves durable financial clarity, which can only be achieved through coordinated federal action, starting with the passage of the SAFER Banking Act,” he stated.
Impact of Regulatory Changes on Banking Fundamentals
The anticipated elimination of Section 280E is expected to significantly boost operator cash flow and profitability, enhancing balance sheets and alleviating financial pressures across the cannabis industry. Key expected outcomes include:
- Increased deposit predictability
- Reduced account churn driven by business failures
- A more resilient client base
Improved operator economics are projected to enhance credit profiles and decrease loan default risks, which will benefit Safe Harbor's lending strategy and mitigate potential downturns.
Complying with a Complex Regulatory Landscape
As federal rescheduling may heighten interest from financial institutions in the cannabis sector, Safe Harbor recognizes that compliance remains complex. Banks must adhere to stringent Bank Secrecy Act requirements, necessitating enhanced due diligence and meticulous transaction monitoring.
These ongoing challenges enhance the demand for specialized systems and operational expertise, which Safe Harbor effectively provides through its managed platform.
Safe Harbor's Strategy for Scaled Growth
Safe Harbor’s banking platform allows partner banks to confidently serve cannabis-related businesses while retaining deposits and outsourcing high-risk compliance functions. With nearly a decade of experience in compliant cannabis banking, Safe Harbor is strategically positioned to navigate the evolving landscape.
The company aims to enhance core deposits, deepen platform engagement, and promote scalable, compliant growth, aligning with its long-term objectives. Safe Harbor is committed to offering transparent and risk-managed financial services that contribute to the growth and legitimacy of the legal cannabis sector.
About Safe Harbor
Safe Harbor is a cannabis-focused financial platform that delivers tailored banking, lending, and business services designed specifically for the cannabis industry. As a pioneer in compliant cannabis banking in the U.S., the company has facilitated over $26 billion in cannabis-related transactions across 41 states and territories. Through its proprietary Cannabis Banking Solutions™ Platform and a network of regulated financial institution partners, Safe Harbor empowers cannabis operators to achieve financial clarity and confidence.
For more information, visit www.SHFinancial.org.
Cautionary Statements
This press release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, and actual performance may differ significantly. Safe Harbor does not undertake to update any forward-looking statements made herein.
Contact Information
Investor Relations: ir@SHFinancial.org
Media Relations: safeharbor@kcsa.com