A Capitol Hill initiative would provide a mechanism for cannabis companies to list on exchanges
While one of the main focuses of the new Capital Lending and Investment for Marijuana Businesses (CLIMB) Act is to provide access to banking services in the marijuana industry, there is another important provision related to stock exchange listings. The bipartisan Congressional measure introduced last Thursday seeks to allow cannabis businesses operating in legal states to list on national stock exchanges. The measure has undoubtedly raised the hackles of many investors who currently hold marijuana stocks in their portfolios.
Representatives Troy Carter and Guy Reschenthaler are currently behind the sponsorship of the CLIMB Act. While a key goal of the legislation is for the marijuana industry to be able to obtain financial services and investment opportunities, one section stands out as particularly novel.
Should it become law in the future, the proposal would provide safe harbor for national securities exchanges such as the New York Stock Exchange or Nasdaq. These could include market participants that “have listed, list, or intend to list, or permits the trading, or facilitates the offering, listing, or trading on a national securities exchange, of the securities of a cannabis-related legitimate business or a service provider.”
In simple terms, it would translate to a big boost to the growing and flourishing industry by giving it a legitimate value on Wall Street. Carter said during a press release that the CLIMB bill would focus on small businesses operated by communities with unbalanced privilege. As such, the bipartisan measure is a great opportunity to bring fairness and equal opportunity to the nation’s burgeoning cannabis industry.