The Democrats are working to follow through on campaign promises from the 2020 election as it relates to cannabis legalization or decriminalization.
Earlier this week, the House of Representatives voted in favor of a bipartisan bill to protect banks that service state-legal cannabis businesses from being penalized by federal regulators. The passing of the legislation represents an important step forward and we will be monitoring the trend from here.
This comes after Colorado Representative Ed Perlmutter (Democrat) sent out letters to gain support for the Secure and Fair Enforcement (SAFE) Banking Act ahead of the vote. The vote is the first floor action on a cannabis reform bill for this Congress. In 2019, the legislation was passed by the House with bipartisan support and we expect to see a similar response from the Senate.
Another important development for the legal cannabis movement was reported by New Jersey Senator Cory Booker (Democrat) who said that President Joe Biden is already where he needs to be to get a bill to end federal cannabis prohibition enacted into law. Senator Booker said the recent confusion on the president’s position comes down to semantics and we find this too significant.
In a recent interview, Senator Booker said that President Biden’s stance in favor of decriminalization will be enough to advance legislation that he is working on with Senate Majority Leader Chuck Schumer (New York Democrat) and Senate Finance Committee Chairman Ron Wyden (Oregon Democrat).
If cannabis banking legislation is passed, Senator Booker does not expect to see resistance from President Joe Biden. We are favorable on how the bill has gained support from both parties and believe that cannabis legalization in the US is a near-term event.
If cannabis is legalized in the US, we expect to see a massive influx of capital come into the sector. We believe the US cannabis market is in the early innings of a major growth cycle and will monitor how legislation advances through the government.
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