Benzinga - by Maureen Meehan, Benzinga Editor.
U.S. cannabis stocks jumped Wednesday following the Senate Banking Committee approval of the Secure and Fair Enforcement Regulation (SAFER) Banking Act before pulling back.
Such companies as Canopy Growth Corp (NASDAQ: CGC), Cronos Group Inc (NASDAQ: CRON), Aurora Cannabis Inc (NASDAQ: ACB), SNDL Inc (NASDAQ: SNDL) and Tilray Brands Inc (NASDAQ: TLRY) scooted up between 3% and 6.5%. The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) spiked 6% following the vote.
The SAFER Banking Act, introduced by a bipartisan group of senators last week, will now move to the Senate floor.
This entire process, a regulatory milestone that has been in the works for nearly a decade, holds vast possibilities for a $1-billion cannabis industry that has been operating on a cash-only basis all these years.
Hard To Believe? The burgeoning marijuana industry has not had access to banking, credit, financial institutions or tax advantages since its modern inception as a sector.
Cannabis industry leaders, many of whom are at the Benzinga Cannabis Capital Conference in Chicago Wednesday and Thursday, could not be more pleased.
“Today’s decision to pass SAFE(R) by the Senate Banking Committee takes us one step closer to a safer industry for all,” said Curaleaf Holdings Inc (OTC: CURLF) CEO Matt Darin. “While the work doesn’t stop here, let’s take a moment to appreciate this milestone & the work so many have done to get us to this point. Thank you!”
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