The Senate Banking Committee is gearing up for a crucial vote on the SAFE Banking Act, a bill that aims to improve the financial industry’s ability to collaborate with cannabis companies.
The committee is expected to hold the vote on September 27, as reported by Politico. However, there is a possibility that the timing might change slightly, according to Punchbowl News.
If approved by the committee, the cannabis banking bill is projected to gather enough votes in the Democratic-controlled Senate. However, analysts caution that the Republican-controlled House of Representatives may either be indifferent or opposed to the measure. This could present challenges to its passage, and it may be more attainable after the 2024 election, potentially in December of that year.
In a setback for the industry, the cannabis banking bill was excluded from a comprehensive year-end package last December, which negatively impacted cannabis stocks.
Notably, on Friday, several cannabis-related exchange-traded funds and company stocks experienced significant gains. The AdvisorShares Pure U.S. Cannabis ETF (MSOS) rose by 7%, while the ETFMG Alternative Harvest ETF (MJ) increased by 4%. Additionally, shares of Tilray Brands (TLRY), Green Thumb Industries (GTBIF), Curaleaf (CURLF), and Canopy Growth (CGC) saw substantial trading upticks.