By Cannabis stocks experienced gains on Thursday following reports that a key Senate committee is expected to vote on a bill aimed at facilitating financial cooperation with cannabis companies. Senate Banking Committee chair, Sherrod Brown, stated that an agreement on the SAFE Banking Act is imminent. Brown has indicated his intention to address the bill within the next six weeks. Analyst Jaret Seiberg predicts that the committee will approve the bill, as Brown would not seek a vote without confidence in its passage.
Seiberg also projects that Senate Majority Leader Chuck Schumer will likely push for the passage of the cannabis banking bill in the fourth quarter of this year. The measure is expected to garner sufficient backing to overcome any filibuster attempts. In a recent floor speech, Schumer expressed his commitment to advancing cannabis legislation through the SAFE Banking Act.
However, Seiberg warns that the future of the bill may face challenges in the Republican-led House of Representatives, as its leaders either hold neutral or opposing positions. As a result, the best opportunity for passage may arise after next year’s election.
Seiberg suggests that the most probable route forward for the legislation is as part of a comprehensive year-end package enacted during a lame-duck session in 2024. Even this option poses significant hurdles.
The exclusion of the cannabis banking bill from last year’s extensive year-end package had a negative impact on marijuana stocks.
On Thursday, several cannabis exchange-traded funds experienced gains, including the AdvisorShares Pure U.S. Cannabis ETF (MSOS) with a 6% increase, and the ETFMG Alternative Harvest ETF (MJ) with a 2% gain. Furthermore, shares of Tilray Brands and Green Thumb Industries saw advancements, while Curaleaf and Canopy Growth experienced losses.
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