DENVER, Dec. 18, 2025 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial (NASDAQ: SHFS) (“Safe Harbor” or the “Company”), a provider of banking, lending, and financial services to the legal cannabis industry, announced that the federal rescheduling of cannabis represents a meaningful policy shift with long-term implications for the Company’s platform. The reclassification is expected to improve the financial strength of cannabis operators, reduce industry attrition, and increase financial institution participation—trends that support more stable deposits, lower client turnover, and a larger addressable market for Safe Harbor’s fully managed platform.
Terry Mendez, CEO of Safe Harbor said:
We commend President Trump on his directive to reschedule cannabis by executive order, as it marks a monumental shift in tone from Washington and a long-awaited acknowledgment of the disconnect between federal policy and the realities of today’s regulated cannabis economy. While rescheduling may ease certain operational burdens for operators and financial institutions, it does not resolve the longstanding need for clear, durable banking protections.
For Safe Harbor, any step that strengthens operators or encourages broader financial institutions’ participation directly expands the long-term opportunity for our fully managed banking platform, which is purpose-built to support compliant growth as the regulatory environment modernizes.
Any progress is welcome, however, it remains critical to distinguish policy movement from substantive reform. Rescheduling alone does not address the core banking challenges facing the industry. The cannabis sector deserves durable financial clarity, and that can only come through coordinated federal action, beginning with passage of the SAFER Banking Act.
Stronger Operators Drive Stronger Banking Fundamentals
The elimination of Section 280E is expected to materially enhance operator cash flow and profitability, strengthening balance sheets and reducing financial strain across the industry. This improvement is expected to:
- Increase deposit predictability and quality
- Reduce account churn driven by business failures
- Create a more resilient and durable client base
Stronger operator economics also translate into improved credit profiles and lower loan default risk, supporting Safe Harbor’s lending strategy while mitigating downside exposure.
Continued Complexity and Increased Demand Requires Purpose-Built Infrastructure
While rescheduling is likely to accelerate interest from banks exploring cannabis, the regulatory landscape remains complex. Financial institutions must still meet rigorous Bank Secrecy Act requirements, including enhanced due diligence, transaction-level monitoring, and ongoing state and federal oversight.
These realities increase demand for specialized systems, experienced operational oversight, and the kind of purpose-built compliance infrastructure Safe Harbor delivers through its fully managed platform.
Platform Strategy Positioned for Scaled Growth
Safe Harbor’s fully managed banking platform enables partner banks to serve cannabis-related businesses confidently—retaining deposits while outsourcing high-risk compliance and operational functions to an industry leader.
With nearly a decade of experience operating a compliant cannabis banking platform, Safe Harbor is uniquely positioned to lead through this next chapter. The Company believes that improved operator economics, broader financial institution participation, and sustained regulatory rigor all align with its long-term strategy: grow core deposits, deepen platform engagement, and support scalable, compliant expansion.
Safe Harbor remains committed to delivering transparent, risk-managed financial services that advance the health, maturity, and legitimacy of the legal cannabis sector.
About Safe Harbor:
Safe Harbor is a cannabis-exclusive financial platform delivering smarter banking, lending, payments and business services tailored to how the cannabis industry actually operates. As one of the original pioneers of compliant cannabis banking in the U.S., Safe Harbor has facilitated more than $26 billion in cannabis-related transactions across 41 states and territories. Through its proprietary Cannabis Banking Solutions™ Platform and network of regulated financial institution partners, Safe Harbor empowers cannabis operators to gain clarity, control and confidence in their financial operations. From daily banking to long-term growth, Safe Harbor provides real solutions and personal support—built exclusively for cannabis. Safe Harbor is a financial technology company, not a bank. Banking services are provided by our partner financial institutions. For more information, visit www.SHFinancial.org.
Cautionary Statement Regarding Forward-Looking Statements:
Certain information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; success or viability of new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that have been or may be brought by or against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Safe Harbor Investor Relations Contact:
ir@SHFinancial.org
Safe Harbor Media Relations Contact:
safeharbor@kcsa.com
