(Reuters) – Shares of pot companies were trading higher on Thursday as the U.S. Senate Banking Committee prepares to discuss the SAFE Banking Act, a crucial legislation that would make it easier for the cannabis industry to access banking services.
If the bill advances through the committee stage, it would be voted by the Senate for the first time. The bill has been passed by the House of Representatives seven times in the past.
Industry insiders are cautiously optimistic that the bill, which has bipartisan support, will be signed into law this time.
Goodness Growth Holdings Inc, Cresco Labs Inc, Cronos Group Inc, SNDL, Trulieve Cannabis and Aurora Cannabis were up between 0.60% and 8.6% in early trading.
BRADY COBB – CEO, SUNBURN CANNABIS & DC LOBBYIST
“This time (it) feels different. With strong bipartisan support and committee leadership, coupled with the majority leader’s recent pivot to a position of support, I expect the hearing to be favorable and for a mark up and floor vote to be scheduled in coming weeks.”
MATT HAWKINS – FOUNDER & MANAGING PARTNER, ENTOURAGE EFFECT CAPITAL
“SAFE Banking’s bicameral nature this time around is an encouraging step forward compared to its past filings, but the outcome of hearing will provide much-needed context. If Congress truly cares about representing public opinion and supporting hardworking entrepreneurs, they must come together to finally pass this much-needed reform.”
JIM CACIOPPO – CEO, CHAIRMAN AND FOUNDER, JUSHI HOLDINGS INC
“Instead of squandering another opportunity, Congress has a chance to pass the SAFE Banking Act. Cannabis businesses have continued to pay more than their fair share of state, federal, Social Security and Medicare taxes, and it’s time we stop discriminating against the industry.”
TROY DATCHER – CEO, THE PARENT COMPANY
“In this challenging economic environment, swift passage (of the bill) is crucial for the tens of thousands of state-licensed and ancillary cannabis businesses. This legislation will also help address the public safety risks that have been created by forcing a $30 billion industry to operate largely in cash.”
MORGAN PAXHIA, MANAGING PARTNER OF POSEIDON INVESTMENT MANAGEMENT AND $PSDN CANNABIS ETF
“This is the first of several steps for the Senate to proceed forward to a vote so this was very welcome to say the least. The American Bankers Association is pleading for fast tracking to a vote in the Senate and we support their plea.”
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shailesh Kuber)