Home Shares & Financial Will cannabis banking be legal in America this year?

Will cannabis banking be legal in America this year?

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2022-04-01-Is cannabis banking legal in America this year

Cannabis stocks rose in the days leading up to a vote in the House of Representatives this week on a bill to remove cannabis from the list of controlled substances. The question is whether the MORE act will pass the Senate. The big question is also whether the SAFE Banking Act will be passed.

The House is likely to pass the MORE bill this week, which "eliminates criminal penalties for a person who produces, distributes or possesses marijuana." The law was passed in 2020 but has lingered in the Senate. That is now also conceivable.

The same happened with the SAFE Banking Act of 2021. If passed, this bill will prevent federal banking regulators from penalizing financial institutions for providing services to legitimate cannabis-related businesses. Democratic critics of the law in the past argued that it should be broader in scope by legalizing marijuana at the federal level or incorporating criminal law provisions.

cannabis banking

Congresswoman Nancy Mace (R-SC), a longtime advocate for the legalization of cannabis, told Yahoo Finance she is somewhat optimistic that legislation will be passed this year. While the SAFE Act does not meet national legalization, it would be a game-changer for many cannabis companies that already operate in multiple states.
Kim Rivers, CEO of Trulieve (TCNNF), said her cannabis dispensaries are very cash-rich. This poses a risk to store staff and limits payment options for consumers. Cannabis banking legislation would change that. “It would also lower our cost of capital,” she said. "We've had to deal with higher rates as the options for banks are limited."

Cannabis shares

Shares of Trulieve have struggled in the past year, falling nearly 2021% since March 50. US stocks of Green Thumb Industries (GTBIF) have fallen by about the same amount since February. Curaleaf (CURLF) fell by 58% during that period.

Tilray (TLRY) hit a record high of $2018 in September 214,06, after a law was passed in Canada in June to legalize the sale of cannabis. Yesterday, the stock closed at $8,14. All cannabis companies are based in Canada due to the US federal ban. Many of their stocks are also available for trading in the US, and many, such as Trulieve and Curaleaf, have stores in the US.

Read more finance.yahoo.com (Source, EN)

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