House includes cannabis banking measure in National Defense Authorization Act

Alliance Global analyst Aaron Grey on Wednesday said a vote by lawmakers to include the SAFE Banking bill in the U.S. House of Representative’s National Defense Authorization Act is encouraging, but subsequent actions by the Senate remain key to its passage. As proposed, the law would protect depository institutions by prohibiting regulatory banks from terminating deposit insurance for institutions that service legitimate cannabis businesses, including loans to state-compliant cannabis businesses. The passage of the bill would help lower cost of capital and allow credit card use in dispensaries. “The biggest questions for stocks [is] whether the SAFE act would allow plant-touching companies to uplist to major exchanges,” Grey said. Shares of cannabis companies rose modestly in pre-market trades. Canopy Growth

rose 1.1%, Tilray

added 0.6% and Acreage

rose 3.7%.

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