The approval of the banking bill gives marijuana stocks a boost
The Secure and Fair Enforcement (SAFE) Banking Act was approved by the House Financial Services Committee yesterday. The legislation, if it makes it all the way through Congress, will allow financial institutions to work with cannabis companies in states where cannabis is legal, and is seen as a huge step forward for the cannabis industry. After the news broke that the bill had been approved, marijuana stocks showed their support by giving boosts to their respective companies’ prices.
Prior to the SAFE vote, almost all the cannabis companies listed in the U.S. Marijuana Index were trading in the red. However, this changed with the vote, which saw almost all move to the black. Green Thumb’s stock went up by 7.36% to $14.85. This was the biggest climb, but certainly not the only one. Planet 13 saw its price increase by 3.4% to $1.58 and KushCo made it to $5.77, 3.22% more than it was a day earlier. Charlotte’s Web also climbed, reaching $20.16 for a 3.42% increase.
The SAFE Banking Act still needs approval by the full House and a date for a vote has yet to be announced. However, the Financial Services Committee approved the bill 45-15, and that level of support should not falter when House lawmakers cast their votes.
The bill is seen as a precursor to what could come down the line. If approved, other cannabis bills are ready to be tackled and many analysts are now stating that federal marijuana reform could come before the end of this year.