Safe Harbor Financial Poised to Gain from Cannabis Rescheduling and SAFER Banking Act
Rhea-AI Summary
Safe Harbor Financial (OTC:SHFS) said it is positioned to benefit if federal cannabis rescheduling and the SAFER Banking Act advance in Congress. The announcement, dated December 18, 2025, frames the company as potentially gaining from reduced federal barriers and expanded banking access for cannabis businesses.
This is a forward-looking strategic positioning statement; it does not provide financial guidance, transaction details, or quantified impacts on revenue or capital.
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News Market Reaction 20 Alerts
On the day this news was published, SHFS declined 15.23%, reflecting a significant negative market reaction. Argus tracked a peak move of +2.5% during that session. Argus tracked a trough of -30.4% from its starting point during tracking. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $836K from the company's valuation, bringing the market cap to $5M at that time. Trading volume was elevated at 2.4x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Market Reality Check
Peers on Argus
SHFS declined 6.79% while regional bank peers were mixed: GLBZ +0.68%, CARV flat, MBBC +0.26%, BAFN -1.5%, KFFB +4.79%, suggesting a stock-specific move rather than a broad sector shift.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Product launch / deal | Positive | +7.3% | New Payroll Boost solution and major Canopy HR banking win. |
| Nov 17 | Platform expansion | Positive | +7.3% | Launch of full financial solutions platform for cannabis industry. |
| Nov 12 | Recap & metrics | Positive | -23.3% | Recapitalization, debt reduction, and Q3 financial discussion. |
| Nov 10 | Nasdaq compliance | Positive | -8.4% | Nasdaq compliance regained, new capital raised, debt eliminated. |
| Nov 06 | Conference appearance | Neutral | -2.1% | CEO to speak on federal reform and cannabis M&A at summit. |
SHFS has shown positive reactions to product/platform launches, but notable selloffs around recapitalization, balance sheet clean-up, and capital-structure actions.
Over the past few months, SHFS reported several strategic and financial milestones. On Nov 10, 2025, it regained Nasdaq compliance, raised $6.8M, and largely eliminated debt, yet the stock fell 8.37%. A $24M recapitalization and Q3 metrics discussed on Nov 12 saw a 23.27% drop. By contrast, the launch of a complete financial solutions platform on Nov 17 and a new payroll cashflow solution on Dec 9 each drew gains of about 7%. Earlier, management highlighted federal reform themes at a November policy summit. Today’s federal-reform-focused article fits that evolving narrative.
Market Pulse Summary
The stock dropped -15.2% in the session following this news. A negative reaction despite a constructive federal-reform narrative fits SHFS’s pattern of volatility around major developments. Recent recapitalization and compliance milestones on Nov 10 and Nov 12 coincided with declines of 8.37% and 23.27%, respectively. The current move, with the stock 85.67% below its 52-week high and trading under its $3.18 200-day MA, underscores market caution toward capital structure, dilution risk, and execution despite potential policy tailwinds.
Key Terms
rescheduling regulatory
safer banking act regulatory
AI-generated analysis. Not financial advice.
DENVER, Dec. 18, 2025 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial (Safe Harbor or the “Company”) (Nasdaq: SHFS), a fintech leader in providing financial services and credit facilities to the regulated cannabis industry, issued the following statement regarding the potential federal rescheduling of cannabis.
The Company anticipates that the potential rescheduling of cannabis to Schedule III and the potential encouragement for the passage of the SAFER Banking Act would each have a positive impact on Safe Harbor’s business and its clients:
- Schedule III and the SAFER Banking Act should encourage more than 4,700 state-chartered banks and credit unions (FIs) not banking cannabis related businesses (CRBs) to reconsider, potentially expanding Safe Harbor’s total addressable market. Safe Harbor’s Fully Managed turnkey compliance service lets FIs quickly, compliantly, and profitably serve CRBs in 41 states and territories. Even if SAFER Banking passes, CRBs would still require enhanced compliance with specialized expertise and infrastructure that Safe Harbor has built and implemented for the past 10 years.
- Under Schedule III, the 280E taxes paid by Safe Harbor’s CRB clients would be replaced by a normal tax regime, which could materially improve the Company’s clients’ retained cash flows. Safe Harbor’s investment income and loan capacity are driven by CRB client balances.
- Interest expense would become tax-deductible, reducing the after-tax cost of debt for CRBs, which could enable them to borrow more money from lenders like Safe Harbor’s financial institutions. Safe Harbor earns interest income on CRB loans.
“Rescheduling cannabis to Schedule III should benefit Safe Harbor Financial because we help financial institutions service the cannabis industry, and earn income based on the assets we manage on their behalf. The potential passage of the SAFER Banking Act should also expand the total available market for Safe Harbor. As such, any encouragement by President Trump to pass the SAFER Banking Act is welcome,” said Terrance Mendez, CEO of Safe Harbor.
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
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 the rescheduling of cannabis, the passing of the SAFER Banking Act and any other proposed regulations, the potential positive effects of any rescheduling or legislation, 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:
Ellen Mellody
570-209-2947
safeharbor@kcsa.com
FAQ
What did Safe Harbor Financial (SHFS) announce on December 18, 2025 about cannabis rescheduling?
How could the SAFER Banking Act affect Safe Harbor Financial (SHFS)?
Does the December 18, 2025 announcement provide financial guidance for SHFS?
Is Safe Harbor Financial (SHFS) guaranteed to benefit from federal rescheduling or the SAFER Banking Act?
Where can investors find more details about SHFS's plans related to cannabis banking?
