Senate Committee Decision On Cannabis Companies: On Wednesday, marijuana stocks lost gains after a key U.S. Senate vote. This sent the market on a rollercoaster. The committee approved a bill to aid legal cannabis companies by granting them banking access.
A bipartisan group pushed the SAFER Banking Act in the Senate Banking Committee. The law aims to protect banks working with legal marijuana sellers. If the committee approves the plan, it proceeds to the Senate floor for further debate.
U.S. weed companies’ stock market shares surged after the Senate’s decision. Because financial markets are unpredictable, the pendulum swung back, and most stocks ended the day down.
Canopy Growth (WEED.TO) dropped 4%, Aurora Cannabis (ACB.TO) fell 4.7%, Cronos Group (CRON.TO) dropped 1.9%, and SNDL Inc (SNDL.O) dropped 1%. All of this was part of the market’s dance. Curaleaf Holdings Inc. (CURA.CD) surprised the market with a 3.7% gain. Tilray Brands (TLRY.O) ended the day flat, a more neutral choice.
The effect was observed in individual stocks and cannabis-related ETFs. The Advisor Shares Pure U.S. Cannabis ETF (MSOS.P) decreased by 0.6%, while the Roundhill Cannabis ETF (WEED.Z) increased by 2.6%.
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Jesse Redmond, in charge of Water Tower Research’s cannabis area, gave a sober review of the day. “The vote today is a positive first step,” he said optimistically. Redmond said, “News was already priced in.” Investors expected the banking committee to eliminate it. Solving big problems will lead to significant outcomes.
This has happened before in Congress. The most famous case is the SAFE Banking Act, passed seven times by the House but never by the Senate.
Despite 40 states legalizing marijuana for medical or recreational use. Due to this disparity, banks won’t support vital activities for legitimate cannabis companies. Due to this, limited money is available, and small businesses must navigate the complex realm of transactions primarily involving physical currency. Due to this, a dark cloud looms over them, leading to unknown violent crime.
In an interview, Boris Jordan, the founder of Curaleaf Holdings, emphasized its significance to him. This took four years of hard work, and it was a lot. Jordan said that getting through the Senate Banking Committee was a big deal, showing the industry’s long and complicated journey.
If Congress passes this bill, the world will change differently. Banks have yet to help businesses in their state understand the law. Jordan sees a potential change that could allow cannabis businesses to accept credit cards, with more than a slight possibility. The green rush is on the edge of a new territory where money and marijuana will unite unprecedentedly.
Our Reader’s Queries
What is the Senate Safe Act for cannabis?
The Senate Banking Committee’s progress on the SAFER Banking Act could indicate major shifts in the near future, potentially expanding marijuana’s reach and accessibility across the country. This could also mean bigger opportunities for those in the cannabis industry to make significant deals.
What is the cannabis bill in Congress?
The House has recently introduced a bill that aims to decriminalize marijuana. This bill seeks to remove marijuana from the list of scheduled substances under the Controlled Substances Act, thereby eliminating criminal penalties for individuals who manufacture, distribute, or possess marijuana. This move is expected to have a significant impact on the legal status of marijuana and could pave the way for its widespread use. With this bill, the government is taking a step towards a more progressive and inclusive approach to drug policy.
What is the Senate Safe Act?
The SAFER Banking Act is a proposed regulation that aims to provide all businesses, including those in the cannabis industry, with access to financial services such as deposit accounts and insurance. This act would ensure that state-sanctioned cannabis businesses are not excluded from accessing these essential services. By passing this act, businesses in the cannabis industry would be able to operate more efficiently and effectively, without the added burden of financial exclusion.
What is the Safe Banking Act of 2023?
The proposed bill aims to safeguard federally regulated financial institutions that cater to state-sanctioned marijuana businesses. As of now, several financial institutions refrain from offering their services to such businesses due to the federal categorization of marijuana as a Schedule I controlled substance. The bill intends to provide much-needed protection to these institutions and enable them to serve the marijuana industry without any legal repercussions.