House Passes a Cannabis Banking Bill. Will the Senate Follow Suit?

Barrons2021-04-21

A bill to allow interstate banks to serve state-licensed cannabis operators was passed by a wide margin Monday by the U.S. House of Representatives.The SAFE Banking Actrepresents the first move by a Democratic-controlled Congress to ease up on a fast-growing industry whose product is still illegal under federal law. Similar bills have passed the House before, but approval by the Senate and the White House look more likely this year.

The bill passed in a strongly bipartisan vote of 321-101, and was timed for the day ahead of April 20,the annual 4/20 celebrationof cannabis reform. Against a 0.7% dip in Tuesday’s stock market, shares of U.S. cannabis operators fell in over-the-counter trading and on the Canadian Securities Exchange, where they have gone to list while waiting for big exchanges to accept them. The just-passed SAFE Actwon’t open capital marketsto the industry.

The stock of the largest U.S. chain, Curaleaf Holdings (ticker: CURLF), fell 2.8%, at $12.72. Green Thumb Industries (GITBF) hovered around $27, down 1.4%.Trulieve Cannabis(TCNNF) slipped 2.1%, at $36.72, while Cresco Labs (CRLBF) traded for $11.82, slipping 1.3%. Pot producers that confine their sales to Canada, such asCanopy Growth(CGC),Tilray(TLRY), and Aphria(APHA), all sold off by 5% or more, as the penalty box door loosened for their U.S. rivals.

To emerge from banking’s sin bin, the U.S. operators need the Senate’s approval.Cannabis banking bills passed the House in three previous legislative cycles, only to stall in the Republican-controlled Senate. Now the Senate is run by Democrats like Chuck Schumer, who favors even more comprehensive marijuana reform, so the modest banking measure may make it to President Joe Biden’s desk.

The president has more urgent priorities than weed legalization, but the SAFE Act is seen as a public safety measure that will free cannabis businesses from handling dangerous stacks of cash. It’s hard to argue against that.

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精彩评论

  • 行天下639800
    2021-04-22
    行天下639800
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    2021-04-22
    Alexander920
    • Simon00回复_GOD_
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    • 铭帅
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    • _GOD_
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  • Jack1999
    2021-04-22
    Jack1999
    Pls like and comment 
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    2021-04-21
    deelee
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  • ElaineFaye
    2021-04-21
    ElaineFaye
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  • 2c3154a7
    2021-04-21
    2c3154a7
    Pls like n comment 
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