The SAFE Banking Act is likely the next legislatio
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Posted On: 04/20/2020 2:38:53 PM
The SAFE Banking Act is likely the next legislation needed by cannabis growers/producers to succeed and thrive in today’s marketplace.
Just to bring everyone up to date, the SAFE Banking Act was re-introduced in the 116th Congress by Reps. Ed Perlmutter (D-CO), Denny Heck (D-WA), Steve Stivers (R-OH) and Warren Davidson (R-OH). The bill would prevent banking regulators from penalizing banks working with cannabis-related businesses.
The bill currently has 152 co-sponsors, nearly a third of the House and more than any other cannabis reform legislation to date.
In my opinion, there needs to be some kind of progress made at the federal level if cannabis companies are going to succeed. Investors should keep in mind that outright legalization isn't likely to happen anytime soon with both parties fighting to the death over every single issue, so what would that progress mean and when could it come up for a vote?
Realistically, it is likely that only a modest change --- perhaps one relating to banking --- could pass this kind of Congress. While full legalization would be nice, at least the SAFE Banking Act would make things easier for cannabis companies to roll out product on a nationwide basis, and that first step could eventually lead to full legalization.
So, what kind of timeline should we be looking at? I suggest (based on some of the big spending inclusions Dems are trying to sneak into the small business rescue package currently in Congress), that banking legislation could be included in the next legislation aimed at rescuing the economy. If so, the June to July timeframe seems the most favorable.
Kgem
Just to bring everyone up to date, the SAFE Banking Act was re-introduced in the 116th Congress by Reps. Ed Perlmutter (D-CO), Denny Heck (D-WA), Steve Stivers (R-OH) and Warren Davidson (R-OH). The bill would prevent banking regulators from penalizing banks working with cannabis-related businesses.
The bill currently has 152 co-sponsors, nearly a third of the House and more than any other cannabis reform legislation to date.
In my opinion, there needs to be some kind of progress made at the federal level if cannabis companies are going to succeed. Investors should keep in mind that outright legalization isn't likely to happen anytime soon with both parties fighting to the death over every single issue, so what would that progress mean and when could it come up for a vote?
Realistically, it is likely that only a modest change --- perhaps one relating to banking --- could pass this kind of Congress. While full legalization would be nice, at least the SAFE Banking Act would make things easier for cannabis companies to roll out product on a nationwide basis, and that first step could eventually lead to full legalization.
So, what kind of timeline should we be looking at? I suggest (based on some of the big spending inclusions Dems are trying to sneak into the small business rescue package currently in Congress), that banking legislation could be included in the next legislation aimed at rescuing the economy. If so, the June to July timeframe seems the most favorable.
Kgem
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