U.S. Cannabis Stocks Surge on Congressional Vote

Strategic Insights -

The passage of the SAFE Banking Act in the U.S. House of Representatives has sparked a significant increase in the stock prices of major cannabis companies. As part of the National Defense Authorization Act for Fiscal Year 2022, the measure aims to allow banks to legally finance cannabis businesses, reducing the risk of violent crime and strengthening the financial system. While the bill still faces an uphill battle in the Senate, its inclusion in the defense budget bill significantly improves its chances of becoming a law.

Key Takeaways:

  • The SAFE Banking Act was adopted by a voice vote in the U.S. House of Representatives as part of the National Defense Authorization Act for Fiscal Year 2022.
  • The measure aims to allow banks to legally finance cannabis businesses, reducing the risk of violent crime and strengthening the financial system.
  • The passage of the bill has sparked a significant increase in the stock prices of major cannabis companies, with Cresco Labs rising 4.3% to $9 per share, Green Thumb Industries gaining 1.9% to $27.30, Curaleaf rising 1.24% to $12.29, and Trulieve Cannabis gaining 4.4% to $29.25.
  • The bill now faces an uphill battle in the U.S. Senate, but its inclusion in the defense budget bill improves its chances of becoming a law.
  • Representative Ed Perlmutter (D-Colorado) praised the bill as a step towards reducing violent crime in communities and strengthening the financial system.

Statistics:

  • 4.3% increase in Cresco Labs stock price to $9 per share
  • 1.9% gain in Green Thumb Industries stock price to $27.30
  • 1.24% rise in Curaleaf stock price to $12.29
  • 4.4% gain in Trulieve Cannabis stock price to $29.25
  • 5 times previous passage in the House of Representatives

Sources:

  • Rep. Ed Perlmutter (D-Colorado), Twitter
  • National Defense Authorization Act for Fiscal Year 2022
  • Safe Banking Act
  • CNBC: "U.S. cannabis stocks surge after passage of banking bill in House"